Bank of Canada Sees Progress in Cooling Inflation But Needs More Evidence Before Pausing Rate Hikes

Bank of Canada Governor says high interest rates are cooling the economy, but more evidence of slowing inflation needed before pausing hikes.

Policymakers concerned core inflation isn't showing downward momentum yet. Focus is on how slowing economy will impact future inflation.

Governor reiterates inflation still too high and broad-based, but clear signs rate hikes are reducing demand.

Markets coming around to idea rates will stay higher for longer. Central bank watching economic data closely before next decision.

Traders see 33% chance of another 0.25% hike at October 25 meeting. Inflation data for September out October 17.