• Notes From The Desk | BoC Meeting: We Aren’t There Yet

Notes From The Desk | BoC Meeting: We Aren’t There Yet Sept 07 2022

The Bank of Canada (BoC) hiked 75bps this morning, bringing the overnight rate to 3.25%

The BoC squashed any hope that they were finished by making it clear that ‘policy interest rates will need to rise further.’

Implications:

  • Little reaction in yields as the bond market is already priced for a terminal rate of 3.5% to 3.75%
  • Going forward, the pace of hikes is likely to be in clips of 25 bs -50 bps
  • Inflation remains the most important data point
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