On Thursday (Oct 27), / choppy downside, temporarily traded at 1.3556, up 0.01%.
A 50 basis point hike on October 26 will take it to 3.75% from 3.25%, the highest level since January 2008.
The Bank of Canada said it expects global inflation to fall as economic growth slows and supply-chain disruptions ease.
And said the preferred measure of core inflation has yet to show meaningful evidence that underlying price pressures are easing.
Short-term inflation expectations remain high and the risks of higher inflation are growing.
Inflation is expected to return to 2% by the end of 2024.
Given high inflation, interest rates “need to rise further”.
Future rate rises will be influenced by an assessment of how effectively tightening slows demand, how supply challenges are addressed and how inflation and inflation expectations are addressed.
Usd/CAD moved sideways after a sharp move in the 1.3533/1.3650 range late in Tokyo.
