- Ahead of June 7 hike, the BOC debated hiking vs holding and signalling a July hike
- Governing Council felt enough data had accumulated to convince them more restrictive policy was needed
- Governing Council is increasingly concerned that the disinflationary momentum needed to bring inflation back to 2% could be waning
- Was concerned 3-month measure of core inflation were not showing a downward trend
- Recent data suggested additional momentum in household sector demand
- Noted that housing resale prices had increased for three consecutive months
USD/CAD is at a 9-month low at the moment, down 71 pips to 1.3162.