BOC minutes: Debated not hiking at the July 12 meeting

<ul><li>Consensus among BOC members was that the cost of delaying action was greater than the benefit of waiting for more data</li><li>Agreed they were prepared to hike further if needed but 'did not want to do more than they had to'</li><li>Concerned that progress towards price stability could stall and inflation could rise again if upside surprises materialize</li><li>Felt the data clearly indicated that excess demand and core inflation were proving to be more persistent than expected</li><li>Core inflation measures suggest the return to 2% inflation will take longer than anticipated</li><li>Agreed that household consumption should moderate as higher rates take effect</li><li>Felt it was too early to tell whether wage growth was easing</li></ul><p>This doesn't sound like a central bank that will be in a rush to hike again, especially with data since the decision coming in soft. USD/CAD is up 70 pips to 1.3237 today, which is a five-day high.</p>

This article was written by Adam Button at www.forexlive.com.