Market Wire: Bank of Canada Hikes As Expected, Outlines Case for Slower Tightening Ahead
The Bank of Canada lifted its benchmark rate to 3.25 percent this morning, delivering a 75 basis point hike while adjusting its language in a data-dependent direction – a shift that could signal smaller hikes in the months to come. In the statement accompanying the decision, the central bank noted a moderation in headline inflation as gasoline costs slumped in July, but pointed to elevated core measures as evidence price pressures have continued to build across the economy. Officials signalled more tightening to come, saying, “Given the outlook for inflation, the Governing Council still judges that the policy interest rate...