23 August 2010

(Today overnight target rate is 0.75%).

Dealer                      Sept 8    Oct 19    Dec 7
BoA-Merrill Lynch        1.00%    1.00%    1.00%
BMO Capital Mkts        1.00%    1.00%    1.00%
Casgrain & Co Ltd       1.00%    1.25%    1.25%
CIBC World Mkts         1.00%    1.00%    1.00%
Deutsche Bank Sec.    1.00%    1.00%    1.25%
Desjardins Securities    1.00%    1.25%    1.50%
Laurentian Bank Sec.   1.00%    1.00%    1.00%
National Bank              1.00%    1.25%    1.50%
RBC Capital Mkts          1.00%    1.00%    1.25%
Scotia Capital              1.00%    1.00%    1.00%
TD Bank                     1.00%    1.00%    1.25%
Average                    1.00%    1.07%    1.18%

As we can see the majority of respondents agree that after inevitable rate hike on September 8, Bank of Canada will take a pause for an assessment of its monetary policy. We will closely monitor the situation and post updates.