BOC minutes: Agreed to assess need for further hikes based on data

  • Ahead of June 7 hike, the BOC debated hiking vs holding and signalling a July hike
  • Governing Council felt enough data had accumulated to convince them more restrictive policy was needed
  • Governing Council is increasingly concerned that the disinflationary momentum needed to bring inflation back to 2% could be waning
  • Was concerned 3-month measure of core inflation were not showing a downward trend
  • Recent data suggested additional momentum in household sector demand
  • Noted that housing resale prices had increased for three consecutive months

USD/CAD is at a 9-month low at the moment, down 71 pips to 1.3162.

This article was written by Adam Button at Source