David Watt, former HSBC Canada chief economist, called the BOC's 25bp hike to
2.50% "weak", saying the bank framed the move as precautionary because of current
inflation indicators show limited pass‑through of fuel‑cost rises into
non‑energy goods. Watt said if the BOC judges action necessary to curb
inflationary pressure it should be explicit and decisive; the bank's language
that further increases are possible but decisions will be taken
meeting‑by‑meeting suggests, he argued, the move does not mark the start of a
new tightening cycle. Watt wrote: "If rates are going to rise they should say so
with conviction."
