Bank of Canada hikes rates by 50 basis points vs 75 expected

• Prior overnight rate was 3.25%
• Previously the statement said "the Governing Council still judges that the policy interest rate will need to rise further". That language has been largely preserved and says "the Governing Council expects that the policy interest rate will need to rise further"
• Says "we will be assessing how much higher interest rates need to go to return inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to target"
• Global and Canadian economies are evolving broadly in line with the Bank’s July projection
• Inflation excluding gasoline increased and data indicate a further broadening of price pressures, particularly in services
• Surveys suggest that short-term inflation expectations remain high. The longer this continues, the greater the risk that elevated inflation becomes entrenched.
• The housing market is pulling back as anticipated

The commentary in the statement doesn't offer any kind of hint on why they didn't 50 instead of 75 basis points. It's all hawkish and contiues to suggest more hikes to come. The forecasts and comments in the MPR perhaps offer some better insight as they see weaker growth and lower inflation next year.

BOC Governor Tiff Macklem will hold a press conference at the top of the hour.

This is a surprise and USD/CAD has jumped to 1.3641 from 1.3550.