The Bank of Canada was hawkish mainly by using patient language toward timing rate cuts. It just wasn’t convincingly hawkish enough to markets that, left to their own devices, are on the path toward reigniting housing imbalances, tamping down how monetary policy works through mortgage resets, inflaming further government spending and driving concomitant inflationary pressures. The BoC needs to adopt a more assertive stance lest they repeat past mistakes by failing to stand in the way of a broadly based easing of financial conditions. What They Did: The BoC held the overnight rate at 5% as unanimously expected but ... (full story)