INTEREST RATES: Expect another rate hike soon

"The Bank of Canada is like a poker player with a pair of jacks -- not sure it has the winning hand, but comfortable throwing in another quarter-point chip at each betting opportunity for now. Having slashed rates to the max during the global economy's Great Recession, the central bankers are, at this point, only certain that Canada no longer needs such extreme stimulus from monetary policy."

Avery Shenfeld Chief economist

CIBC World Markets

"The bank's forward-looking language does not preclude further rate hikes. After all, the same language gave rise to a rate hike today. However, in contrast to June's statement, the bank now has more wiggle room to raise rates on a more cautious tact if they want to. And, we think they will. From this perspective, the statement was a bit more dovish than expected. The market has lowered the odds of a Sept. 6th followup rate hike to 45 per cent, from 65 per cent before the announcement."

Michael Gregory Senior economist

BMO Capital Markets

"At this point in the economic recovery, the Bank of Canada has the precarious job of balancing the robust domestic strength in the Canadian economy with the external downside risks centered on a slowing U.S. economic recovery and continued financial uncertainty stemming from Europe."

Francis Fong, economist

TD Bank Financial Group

(Source: Vancouver Sun)