Hold On

As a shock to almost no one, the BOC held the overnight rate steady this morning.

While it may seem like a nothing burger, I imagine the release notes, and speeches afterwards to be potentially market moving. Everyone pretty much expected rates to remain the same, but what key officials have to say in terms of why they held, what they see for the future, and what data they are looking at, could potentially move the market and yields.

By tonight we should have a better idea of where Mr. Market thinks rates are headed, as we will have had all day for bonds, stocks, and the Canadian dollar to reflect the markets perceived future.

Of note, is the fact that the BOC will maintain its quantitative tightening, which will still continue to reduce the money supply, and may help to do some of the inflation heavy lifting without lifting interest rates.