If the BoC planned to trim rates tomorrow despite its key inflation measure above 3%—which would be a first since 1991—today’s CPI release won't convince them otherwise.
Canada's primary measure of underlying inflation landed precisely on target today at 3.05% y/y. Sure, that's still above the Bank of Canada's 3% control ceiling, but markets are betting the BoC won't care enough to scrap its easing plans.
The consensus insists that core inflation is destined to drop, and that's all BoC governors need to worry their pretty little heads over, economists say.
Here's what the numbers say:
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