Labreck, a portfolio manager, said the BOC’s recent rate increase should be read
as dovish. Policymakers stressed they would be cautious about further hikes and
noted the policy rate remains below a 2.75% neutral rate, leaving policy still
accomodative. He said this implies the bank is more likely to keep rates at or
near neutral rather than pursue further tightening, and that current
market-implied hikes over the next 12 months look too high.
