Bank of Canada rate hike odds rise after hot inflation report

Author: Adam Button | Category: Central Banks

CPI surprise sends Canadian dollar higher

The Bank of Canada is going to have a tough decision at the September 5 meeting. The market is saying the chances of a hike are increasing and now sit a 33% compared to 23.5% before today's CPI data.

The report showed inflation at 3.0% y/y compared to 2.5% expected. It's the highest year-over-year inflation print since 2011.

The chance of a hike in October is now 80% compared to 73% beforehand. The odds of two hikes before year-end are 31% compared to 26% beforehand.

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