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.