1532 ET - Macquarie Group economist David Doyle is now penciling in 1.25 percentage points of rate increases from the Bank of Canada following a review of the central bank's policy decision and Gov. Tiff Macklem's press-conference remarks. Doyle predicts the BOC benchmark rate to reach 3.5% by the end of 2027. He says Macklem played down the growth impacts from escalated US-Canada trade tensions, with the governor noting firms are learning to live with policy uncertainty. And Macklem "expressed several times greater concern" about the upside risks to inflation posed by the U.S.-Iran war, the Macquarie analyst adds. Doyle says private-sector real GDP growth is rebounding sharply, and trade diversification is already under way judging by goods exports data.