- Some members of governing council felt it more likely than not that overnight rate would need to rise further
- Other members felt 5% would likely be enough to bring inflation to target
- There was a strong consensus that with increasing evidence of falling inflation, BOC should be patient
- Agreed to revisit need for rate hike at future decisions, after seeing more data
- The lack of downward momentum in underlying inflation caused considerable concern, could mean more time needed or that policy not restrictive enough
- Agreed overall inflationary risks had increased
- Persistence in core, elevated expectations, wage growth and atypical corporate pricing behaviour indicate high inflation is becoming entrenched
These minutes have a hawkish bent to them but it's unlikely to help CAD.
