- 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 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.
