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3 Mar 2014
Flash: BoC feeling less pressures - BAML
FXStreet (Guatemala) - Strategists at Bank of America Merrill Lynch said Inflation is still below target in Canada.
Key Quotes:
"Inflation is still below target in Canada, but it has firmed in recent months - suggesting less urgency around Bank of Canada's (BoC) fears of disinflation".
"Stripping out seasonality, monthly prices have risen in the last three readings while measures more closely tied to domestic conditions such as wages and services inflation have bucked their downward trends)".
"This leaves the BoC a bit more comfortable with its on-hold "neutral" stance, and lessens the need for any policy easing".
Key Quotes:
"Inflation is still below target in Canada, but it has firmed in recent months - suggesting less urgency around Bank of Canada's (BoC) fears of disinflation".
"Stripping out seasonality, monthly prices have risen in the last three readings while measures more closely tied to domestic conditions such as wages and services inflation have bucked their downward trends)".
"This leaves the BoC a bit more comfortable with its on-hold "neutral" stance, and lessens the need for any policy easing".