-
Canada’s Inflation Myths
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 ... (full story)