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Bank of Canada opts for a ‘dovish’ 50bp hike
So we got a 50bp hike from the Bank of Canada – in line with our view, but the market had been more cautious, pricing in only around 33bp ahead of the decision. The accompanying statement acknowledges that growth is "proving more resilient than was expected" with Canada's labour market remaining "tight" and the economy "continuing to operate in excess demand". Nonetheless, there is "growing evidence that tighter monetary policy is restraining domestic demand", citing softer consumer spending growth and a weakening housing market. The bank is expecting that "growth will essentially stall through the end of this ... (full story)