Canadian Annual Consumer Price Index (CPI) stayed unchanged at 6.9% as expected. The continued risks of inflation are likely to keep the Bank of Canada busy, according to economists at Commerzbank.

Recent data on the economy, labour and property market was more robust than expected

“The overall rate remained stable at 6.9%, the core rates rose slightly as expected. The continued risks of inflation are likely to keep the Bank of Canada busy.”

“A step of at least 25 bps seems to be expected for the coming meeting in December, with some clearly expecting a bigger step. That is hardly surprising, as recent data on the economy, labour and property market was more robust than expected. The market seems to have partially priced in a 50 bps rate step.”