BOC’s Macklem: We are particularly focused on measures of core inflation

• We are particularly focused on measures of core inflation
• Reduction in headline inflation primarily due to oil prices
• The Canadian labor market is unusually tight
• Next move could be another bigger-than-normal move or could revert to more-normal size

USD/CAD is down 146 pips to 1.3384 today. The market is pricing in a 73% chance of a 25 bps hike on Dec 7 with the remainder at 50 bps.