The BOC really shocked markets back on Wednesday when it hiked rates by 25bps. Pretty much everyone was expecting it to be a non-event. Given Canada’s unique position, the move impacted how many analysts viewed central banks around the world. The number of traders expecting a “skip” at the next Fed meeting dropped dramatically (though it’s still a majority). The BOC was the first G20 country to start pausing rates, all the way back in February. Canada had a spike in inflation like most major world economies, but it was starting to come down at the start of this year. That made Governor Macklem and his Board ... (full story)