Bank of Canada: Wait-and-See Mode Begins After Another Big Hike

The Bank of Canada hiked the overnight rate by 50 bps today, more than we and the market expected but in line with predictions by roughly half of analysts surveyed. The Bank will be “considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target.” So, while this was more a hawkish rate move than we anticipated, the future course of monetary policy does not look dramatically different than we predicted.