# Rate hike bets wane: How money markets and economists are reacting to the latest Canadian inflation report - The Globe and Mail

> Canada's annual inflation rate eased more than expected to 5.9% in January, while month-over-month CPI rose 0.5%, below forecasts. The Canadian dollar dipped about a quarter cent to near 74 U.S. cents, and markets reduced bets on another Bank of Canada rate hike.

- Date: 2023-02-21 · published 2023-02-21T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/37576-rate-hike-bets-wane-how-money-markets-and-economists-are-reacting-to-the-latest
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Softer inflation lowers the likelihood of further Bank of Canada tightening, which tends to weigh on the loonie and slightly support Canadian export competitiveness. The impact on feed commodity prices is limited.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-rate-hike-bets-wane-how-money-markets-and-economists-are-reacting-to/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.