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Core inflation revisions won’t change Bank’s thinking

The CPI-trim and CPI-median measures of core inflation will be revised up next month but that does not change our view that they will fall sharply over the first half of this year. We think the 25 bp hike from the Bank of Canada next week will mark the end of the tightening cycle, although we doubt the Bank will go as far as to confirm that in its communications.  

Canada Drop-In (Wednesday, 25th Jan): Will January’s anticipated Bank of Canada rate hike be the last in the cycle? Join this 20-minute briefing on the policy outlook shortly after the decision announcement. Register here.  

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