The BoC held the line on rates this morning, and nobody had to feign astonishment. Heading into the decision, overnight swaps were pricing a 94% chance of no move, leaving the remaining 6% for the people who still bet on lottery tickets.
"Employment has shown solid gains in the past three months," and "Canada’s economy grew by a surprisingly strong 2.6% in the third quarter," the Bank said in its official statement, adding that underlying inflation "is still around 2.5%."
The BoC wrapped up its prepared remarks by stating, "The current policy rate is at about the right level to keep inflation close to 2%."
The market's reaction
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