- Canadian economy remains in excess demand
- Bank is encouraged that inflation is declining
- Considered whether rates may need to stay restrictive for longer
- BOC remains more concerned about upside risks to forecast
- We've come a long way from the 8% inflation last summer
There's a hawkish tinge to these comments but that's not a surprise. I don't see him seriously talking about hiking more here. USD/CAD is flat on the day at 1.3462 but the loonie is softer against the rest of the field as the US dollar slumps broadly. That's despite a rally in oil prices and suggests there were many in the market thinking the BOC would be more hawkish.