📝Do Not Expect Additional Rate Hikes From BoC: ING

We don’t think additional rate hikes will happen though. As the BoC admits, employment growth is rising more slowly than the labour force and job vacancies are slowing. This should ease wage concerns and contribute to more labour market slack. Meanwhile, the structure of the residential mortgage market means that with most people facing an adjustment to their borrowing rate on a three-to-five-year basis (rather than 30 years in the US), more households will be increasingly exposed to the lagged effects of BoC rate rises. This should all help to weigh on activity and dampen price pressures, potentially opening the door for rate cuts in mid-2024. In the Monetary Policy Report released today, the BoC reported how the ratesensitive categories are experiencing the greatest slowdown in consumption due to the effect of tighter monetary policy