Canadian inflation climbed by more than consensus estimated again. The reaction in CAD and short-rates was fairly muted either because it wasn’t a wild break from where markets were leaning and/or because it’s likely best treated as a placeholder with most of the BoC’s projections and decision making process at an advanced stage ahead of next Wednesday’s communications. Readings like these nevertheless marginally reinforce expectations for a shift to the reinvestment phase of the QE program on October 27th, while still indicating that rate hikes lie some time further away than markets are pricing around March/April ... (full story)