Hike or no hike?

Will he do it? Will the Bank of Canada Governor David Dodge hike interest rates yet again? TD offers a good argument for the 'yes' side; however, most analysts think a hike is unlikely. Whatever the prediction, hesitance is a common theme. It's definitely a close call. The Toronto Star says a hike is unlikely. The Globe and Mail is refusing to make a prediction.

TD provides a good overview of the criss-cross of indicators the bank is looking at. Even though TD leans towards a prediction of a hike, their analysis demonstrates how unpredictable the decision is.

Given the mixed results of the bank's indicators and Dodge's pledge of transparency, I doubt he will surprise us with a further increase. But should he? I believe so. Sure, the brunt of Canada's recent core inflation has become evident only recently, but who's to say this isn't the beginning of a longer trend. We shall see...