Here is the summary of the statement:

• Markets were pricing in a 70% chance of a rate hike today.
• Canadian dollar had quick dropped quickly at 10:00am once BOC decided to keep rates unchanged.
• More from the BOC:
  • Supply bottle necks pushing inflation higher.
  • Oil prices continue to rise.
  • Canada’s GDP half of 2022 expected to be stronger than expected. GDP expected to grow 4% in 2022 and 3.5% in 2023.
  • Wage growth in Canada has increased, housing market continues to put upward pressure on house prices.
  • Labour shortages still elevated.
  • Still need to watch Omicron, even though it is a weaker wave.
  • Hiring intentions are strong.
  • CPI inflation remains high. CPI inflation expected to be close to 5% in first half of 2022. As supply shortages diminish inflation is expected to decline quickly to about 3% by the end of this year. Then gradually ease towards the target rate of 2%.
  • Bank of Canada (BOC) expects to increase interest rate in the coming meetings to achieve the 2% target.
  • Since BOC didn’t raise rates today, we can expect rates to rise in March.
  • Balance sheet run off is expected to begin once interest rate hikes has started.