Will the BOC hike the overnight rate on July 12?

Inflation slowed sharply to 3.4% in May from 4.4% the prior month, but is well above the central bank's 2.0% target and not expected to reach it until early 2025. So the BoC will press ahead and hike the overnight rate by 25 basis points to 5.00% on July 12, according to 20 of 24 economists in the June 28-July 6 Reuters poll.

Will the BOC hit the brakes on interest rate increases?

“The BoC won’t hit the brakes on interest rate increases but it is likely to slow them down. And we believe this week’s increase could be the last in this cycle. We expect a 25 bps increase in the overnight rate to 4.0% from the central bank.

Are markets ready for a 220 bps rate hike?

Markets are priced for a cannonading 220 bps of rate hikes through the rest of the year (we’re holding at 150 bps), and we would readily allow that the market has been amazingly prescient in its hawkish view on the BoC, at least so far.”

Will the BOC's terminal rate move the needle on the CAD?

We see the BoC's terminal rate at 4.25%, and as such expect the BoC to signal that it expects to lift rates further. The BoC is unlikely to offer much to move the needle on the CAD.”