CIBC analysts note The BoC eschewed a rate...>

CANADA: CIBC analysts note The BoC eschewed a rate hike at the conclusion of its

meeting today. Still the comment related to the loonie weighing on inflation and

exports was enough to send the knee jerk move higher in USD/CAD. Additionally,

that the bank will be 'cautious' with future rate increases is consistent with a

Bank that is very leery about the amount of household debt and likely to wait

and see how the past two rate hikes are impacting the Cdn economy. That pretty

suggests that Dec and Jan rate hikes are out of the picture.

 - CIBC add partially offsetting the dovish tone, we have some hawkish material

that buttresses the view that the bank has started a rate hike cycle. 'Less

monetary stimulus will be required over time' is your biggest signal while the

OG is expected to be at zero now. That suggests that above trend growth in

Canada (as indicated in the MPR) will be inflationary going forward.