Governor Poloz’s assertion that their interest rate path is not preordained and data depended, is a common central bank tactic. However, the tone of his speech indicated that a pause is more probably than a follow-up hike in October. Governor Poloz stated there was “is no predetermined path” for rates, policy will be “particularly data dependent” and the BoC will “feel” its way through policy development. Despite nothing new in these comments, Governor Poloz cautious tone suggests a shift from hawkishness and a pause in the BoC tightening cycle after back-to-back hikes (source: Bloomberg).

For further information, please read the attachment (PDF)