Governor Tiff Macklem shifted his tone notably today, reassuring that the Bank was “trying to balance the risks of over- and under-tightening”, whereas previously the emphasis had stressed that it was better to tighten too much rather than too little. The smaller 50 bp hike today – to 3.75% – is the beginning of the end for the tightening cycle, although we still expect 50bp in hikes over the next two meetings.
Canada Drop-In (26th October): We’re holding a briefing on the Bank of Canada decision shortly after the Wednesday 26th policy announcement. Register to join our discussion about how close the Bank might be to pausing its tightening cycle, housing market risks and whether interest rates could be cut next year. Register now.
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