Capital Economics economist Bradley Sanders said the BOC's decision to raise its
policy rate indicates the risk balance has shifted from trade-driven downside to
inflation upside from energy prices. He added the central bank has cooled market
expectations for a more hawkish path, supporting his view that the current
tightening cycle may include only two further hikes. The BOC said high
uncertainty in the outlook warrants cautious policy moves but left open the
possibility of further rate increases.
