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Bank’s hawkishness already looks premature

The Bank of Canada issued a relatively hawkish policy statement on Wednesday this week, which increased speculation that another interest rate hike was coming, possibly as soon as July. But within only 24 hours, the reported weakness in first-quarter GDP growth and the news that the US intends to add Canada to its list of countries subject to tariffs on steel and aluminium imports made the Bank’s haste to tighten look ill-conceived.

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