BoC: First rate hike in seven years - ANZ

The Bank of Canada delivered its first rate hike in seven years overnight, and the tone of the statement was more hawkish than expected, notes the analysis team at ANZ.

Key Quotes

“The BoC is looking through recent inflation weakness (a little more confidently than the Fed it now appears), emphasising that its focus is on the mediumterm, where it believes inflation will be back at target. It certainly didn’t appear to be a one-and-done type decision, with further hikes now priced in over the next 12 months. NZD and AUD were dragged higher by the CAD, perhaps a sign that the market believes the RBNZ and RBA are going to shortly follow their commodity-exporting cousin. We doubt that.”