The Canadian dollar initially fell broadly after today’s CPI report but it’s since rebounded in broad, choppy FX trading today. CIBC has been hinting at a forecast for one more Bank of Canada rate hike but they’re aren’t leaning that way after today’s CPI, which
With gasoline prices falling so far in October, in contrast to a sharp acceleration seen during
the same month a year ago, headline inflation should ease further next month and print close to the upper bound of the
Bank of Canada’s 1-3% target range. Even though the Bank’s core measures of inflation remain too high for their liking,
some of the details within today’s report, combined with the stall in economic activity seen during Q2 and Q3, should give
policymakers comfort that inflation will continue to ease back to 2% without the need for further interest rate hikes.
The BOC meets next week but that comes after some surprisingly-hawkish comments from Macklem last week.
This article was written by Adam Button at www.forexlive.com. Source