In an effort to significantly increase transparency in regards to decision making, during a time of waning confidence in Canadian institutions, the Bank of Canada has released an internal minutes report giving rare insight into decision making.
What’s behind their rate hike decision?
It seems that the Bank of Canada hiked rates last month rather than leaving them unchanged because of labor market tightness and much stronger than had been previously expected growth, according to minutes from the policy setting meeting which was released on Wednesday. After letting inflation soar up to 8%, regaining the public confidence seems to be the new priority for Bank officials, as they have never showed their internal workings before.
The release also inferred that the Bank of Canada will probably keep rates unchanged at the next meeting, and some analysts said it also indicated that decision makers were on a less-aggressive policy footing than many had been expecting, especially due to continued concerns over inflation.