BOC held its policy rate at 2.25% as expected, saying the economy is improving, growth is recovering and inflation should ease from its recent surge; it will continue to assess economic strength and the inflation outlook and is prepared to adjust policy as needed. Analyst Adam Button said the statement's "uncertainty remains high" line suggests the bank is currently more inclined to hold rates than to tighten. Market pricing implies roughly 16 bps of cumulative hikes by year-end, leaving the pro

BOC held its policy rate at 2.25% as expected, saying the economy is improving, growth is recovering and inflation should ease from its recent surge; it will continue to assess economic strength and the inflation outlook and is prepared to adjust policy as needed. Analyst Adam Button said the statement's "uncertainty remains high" line suggests the bank is currently more inclined to hold rates than to tighten. Market pricing implies roughly 16 bps of cumulative hikes by year-end, leaving the probability of further BOC tightening above 50%.