Jonas Goltermann, Developed Market Economist at ING, points out that the BoC will make its policy decision on the 24 October and given this is the last chance (in 2018) for it to make a rate decision in tandem with the release of its quarterly monetary policy report, markets have priced in a 90% chance of a hike.
Key Quotes
“Core inflation is the key variable for the BoC’s policy decisions and the news here is good. This, coupled with the removal of the tariff threat on the back of USMCA, puts the BoC on track for two more rate hikes in 1Q19 and 3Q19.”
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