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Traders Bet Bank of Canada Rate-Hike Pause May Come Even Sooner Than Fed's

  • Market-implied odds of January increase slide to around 60%
  • Wednesday Bank of Canada meeting may offer clues to 2019 path
Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins.

Bank of Canada Governor Stephen Poloz and Senior Deputy Governor Carolyn Wilkins.

Photographer: Justin Tang/Bloomberg
Updated on

Money-market traders, already having written off a hike at Wednesday’s Bank of Canada meeting, are beginning to doubt that policy makers will pull the trigger next month either.

While the Federal Reserve is widely expected to proceed with another quarter-point interest-rate increase in two weeks, overnight index swaps are pricing in just 16 basis points of tightening by the BOC’s Jan. 9 meeting, down from 27 basis points less than a month ago.