Ultimately the Bank of Canada left rates unchanged on April 12 but the minutes of the meeting showed they discussed hiking.
- BOC was of the view that inflation was declining in line with their view and that more evidence was needed to see if mon pol was sufficiently restrictive
- BOC officials agreed that market expectations for a cut later in 2023 did not seem to be the most likely scenario.
- Acknowledged that labour market was still tight
- Agreed there was a sense that economy was proving a little stronger than expected early in the year
- Agreed that it was important to continue to signal that it was prepared to hike further
Market pricing shows only a 3% chacne of a hike at the June 7 meeting and 25 bps in cuts fully priced in by year end.