Bank of Canada: No hike on Wednesday, maybe October - Wells Fargo

According to analysts from Wells Fargo, the Bank of Canada will keep rates unchanged on Wednesday and it could raise rates again as early as October. 

Key Quotes: 

“The Bank of Canada (BoC) elected to increase its benchmark policy rate in July by 25 basis points, marking the first increase since 2010. The change in policy came amid broad improvement in the Canadian economy. Real GDP has steadily accelerated since late
2015, led by improvements in the labor market and strong consumer spending. Core inflation had been slowing since mid- 2016 but has since begun to bottom out around 1.5 percent.”

“Despite the more steady inflation readings of late, core inflation remains near the lower bound of the BoC’s 1-3 percent target range.  In addition, the BoC is faced with the challenge of tightening policy enough to prevent increasing household debt imbalances without tightening too rapidly and causing a sharp economic disruption. As a result, we do not expect a rate hike at the meeting next week (Wednesday 6), but another hike could come as early as October.”