The Bank of Canada yesterday caught markets somewhat off-guard as it announced a fresh rate hike, the first since pausing its tightening campaign in January. The BOC hiked rates from 4.5% to 4.75%, their highest level in 22 years, and signalled the likely need for further hikes moving forward. Ahead of the meeting, only around 20% of analysts polled by Reuters were forecasting a hike. Inflation Persistent at Higher Levels Explaining the move, Governor Tiff Macklem noted that demand in the economy had proved more resilient than projected earlier in the year, with inflation proving more persistent also. Tightness in ... (full story)