The Bank of Canada has shifted to a less prescriptive messaging strategy than it used in January when it signaled a rate-hike pause that reignited the housing market, which added to inflation and the need to resume tightening five months later.
Last week after lifting rates to a 22-year high of 5.0%, Governor Tiff Macklem struck a more hawkish tone than when he announced a pause in January, warning the bank could hike again if economic data shows it is needed.
That switch could leave the BoC less vulnerable to criticism when forecasts go awry, leaving investors and borrowers to arrive at their own conclusions in assessing the outlook for interest rates….