Bank of Canada surprised the market by raising rates last Wednesday to 1%.

The economic scenario improved significantly in 2017 and brought the Central Bank to act accordingly. The only indicator lacking a bit behind is Inflation. As today’s reading shows, the labor condition is improving and, as many expects, should support inflation in Canada. With participation rate stable, the unemployment rate came off to 6.2% and 22.2k jobs were added in the month of August.

Another rate hike chance in October is currently price with 41.9% chance.