The Bank of Canada did exercise patience, but not enough
The Bank of Canada pulled an RBA and hiked rates on June 7 with the market mostly (call it 60-40) priced for no move and more than 80 per cent of Bay Street economists believing the central bank would hold its fire. This is the same Bank of Canada that surprised the markets at half the meetings in 2022, so it really is back to governor Tiff Macklem’s modus operandi.
The tone was hawkish as the press statement left the potential for another move at the July meeting wide open: the futures market is now priced 70 per cent of the way for another 25 beeper. This even had an impact on United States Federal Reserve pricing: