As I was speculating, the Bank of Canada has raised interest rates by 0.25%, which is a change from 0.75% to 1.00%.
The key guiding paragraph to determine future rate hikes is in the last paragraph. From the July 20 statement:
Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.
From the September 8 statement:
Any further reduction in monetary policy stimulus would need to be carefully considered in light of the unusual uncertainty surrounding the outlook.
The phraseology of changing “would have to be weighed” with “would need to be carefully considered” suggests that the Bank of Canada is not necessarily totally done raising rates, but it is not out of the question if data warrants so.
The next Bank of Canada scheduled announcement is October 19, 2010 and the last one for the year is December 7, 2010.
3-month Bankers’ Acceptance Futures are at 1.24% for September and 1.3% for December. Both are trading about 0.15% up from yesterday as a reaction of today’s news. The futures imply there is roughly a 20% chance of a rate increase between now and years’ end.