BoC to stay on the sidelines for now - NBF

According to analysts at NBF, the Bank of Canada’s three core inflation measures on a year on year basis were as follows: 1.9% for CPI-common (unchanged from the prior month), 2.1% for CPI-trim (also unchanged) and 2.2% for CPI-median (up one tick from September). 

Key quotes

"The Canadian headline inflation numbers were in line with forecasts in October. Gains were widespread during the month with none of the main categories registering price declines in seasonally adjusted terms."

"Looking at year-onyear data, headline inflation continued to be hampered by lower gasoline prices (-6.7% y/y) but nonetheless remains close to the Bank of Canada’s mid-point target thanks to a steady increase in rents (+3.7% y/y) and mortgage interest costs (+7.0% y/y"

"This, combined with a buoyant labour market in the country, should allow the Bank of Canada to stay on the sidelines for now."