A 25bp rate hike from the Bank of Canada with a pause declared given expectations of a stalling economy and sharply lower inflation. While suggesting they could hike further if required, we expect the next move to be a cut. CAD is understandably weaker after the release, but the medium-term outlook remains constructive. At a peak and then a pause before a cut: As widely expected, the Bank of Canada raised the overnight rate 25bp to 4.5%. We had suspected that this would be the last hike of the cycle and this has seemingly been agreed by officials. The accompanying statement indicated that “if economic developments ... (full story)