- BOC is increasingly focused on countering upside risks from inflation
- BOC will need to be nimble, and if necessary, forceful to tackle inflation
- We must anticipate the possibility of more surprises before the pandemic ends
- The BOC expects supply disruptions to ease and inflation to come down quickly in H2
- Rates will need to be on a rising path
USD/CAD is little moved on this but combined with today's higher-than-expected inflation report, there path of rates has never been clearer. The 'forceful' language is an interesting one to keep an eye on and could be how the BOC signals the chance of a 50 basis point hike.