Oxford Economics economist Tony Stillo said soft Canadian labor-market data for
September reduced the likelihood of a BOC rate increase at the end of October,
though he did not rule out the option. He still expects the BOC to raise rates
by 25 bps in October and again in December, citing sustained inflation risk from
higher gasoline prices. Stillo said this would likely be a pre-emptive move to
restore the policy rate to neutral rather than the start of a new tightening
cycle.
