Technical Analysis

BOC’s Kozicki: We are moving from how much to raise rates on whether to raise rates


  • Comments from BOC Deputy Kozicki
Adam Button

Adam Button

Thursday, 08/12/2022 | 17:31 GMT-0

08/12/2022 | 17:31 GMT-0

  • BOC decisions will be more data-dependent
  • We are moving from how much to raise rates to whether to raise rates
  • Governing Council agreed that economy still needs a more-sustained moderation of demand
  • Inflation remains too high, will take some time to return to 2%
  • If we are surprised on the upside, we are still prepared to be forceful
  • We recognize that we have raised rates rapidly and effects are working their way through
  • We are seeing some signs of slowing demand but are still in excess demand
  • Full text

These comments were released 15 minutes ahead of schedule. So far CAD is unmoved. This isn’t a firm commitment to the sidelines because the BOC doesn’t want to be caught being overly dovish if inflation re-accelerates but the market can be fairly comfortable in pricing in no change in rates in January.

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