Desjardins economist Royce Mendes said the BOC slowed its tightening, raising
rates by 25bps. He noted officials flagged the possibility of further hikes but
the MPC was unanimous on exercising caution. Mendes called the decision
difficult but forward-looking, saying it reduces the risk of later aggressive
tightening that could shock the economy. He said a December hike is still highly
uncertain—about a 50/50 chance—and he expects policymakers to tighten in phases,
with the next and final hike likely in January.
