BOC: Market pricing for a rate hike has declined measurably - Citi

Citi FX Strategists offer a sneak peek into the upcoming Bank of Canada (BOC) interest rates decision due to be announced on Wednesday.

Key Quotes:                 

“Market pricing for a rate hike has declined measurably

While the Bank of Canada's outlook survey dipped through Q3, much of the upswing post oil shock has held

Diving deeper into the data, indicators of slack and future output prices have been resilient

Given the lag inflation has had with such measures, the BoC should maintain some confidence in CPI trending higher, keeping future hikes alive.”