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 accommodative. 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.

2026-10-28

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 accommodative. 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.