The Bank of Canada held its overnight rate unchanged at 5% as widely expected. The bias hedged the BoC’s bets in a manner that is consistent with expectations they would simply buy time ahead of the next decision with a full forecast update on October 26th. There isn’t much to be lost to step aside now and there could be a lot to be gained in coming back with a fuller assessment next month with a lot more evidence at hand. I hope that’s how it plays out one way or the other, but I fear that the BoC is once again reacting inappropriately to what is pretty obviously a distorted soft patch in the economy that could ... (full story)