BOC Won't Waver Substantially from Tightening Bias -BMO

The BOC won't waver substantially from its tightening bias, says BMO. "The Bank of Canada wouldn't have signalled what it did unless it really believed that bias was going to have some longevity," Michael Gregory, senior economist at BMO Capital Markets. "It's not just going to last a couple of months as it did in 2011," he says. "We all know the Bank of Canada desperately wants to fire a tightening salvo across the bows of the household sector," he says. That said, BMO doesn't see a rate hike until early 2013 as problems in Europe and the US keep it from tightening any sooner, Gregory says.

BOC Won't Waver Substantially from Tightening Bias -BMO

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