ECB: Dovish Hold

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The ECB meets tomorrow.   Few, if any, are expecting fresh action.     The economy has progressed broadly along the lines that ECB anticipated.  Growth is stable near trend levels.  While deflationary pressures have eased, price increases remain minimal. At 0.4% year-over-year, eurozone CPI, officials cannot be content with the progress. 

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A Few Thoughts on Canada

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The Bank of Canada meets Wednesday.  Last month officials acknowledged that growth could be somewhat lower than previously anticipated.   Those fears have likely materialized, and the central bank may shave its growth forecasts for this year and next.  This means that it will take Canada longer to close its output gap.  It not only pushes out the first hike, but it leaves the door ajar for further easing if the economy falters further. 

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