According to analysts at TDS, the Bank of Canada followed through on a widely expected 25 bp hike while the statement portrayed an upbeat tone, emphasizing the economic rotation into exports and business investment and repeating that higher rates will be warranted to keep inflation in check.
Key Quotes
“With the Bank still on a highly data-dependent path, growth running above their projections in October will keep another 2018 rate hike in play. But as things stand today, the 2.8% predicted growth for 2018Q2 looks a touch optimistic, and if the economy can’t clear that hurdle the most likely course for the Bank is still to stay at 1.50% into early 2019.”
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