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A “forceful" 50 bp hike and the start of QT

We now anticipate that the Bank of Canada will raise its policy rate by 50 bp next week and announce the start of quantitative tightening. Nonetheless, we remain sceptical of the view priced into markets that the Bank will hike the policy rate to almost 3% by the end of 2023, and instead expect the policy rate to peak at 2% later this year.

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