INFLATION WENT DOWN IN SEPTEMBER-WHAT DOES THAT MEAN TO THE BANK OF CANADA AND INTEREST RATES?

Canada’s inflation rate fell to 3.8% down, from 4% the previous month mainly by lower grocery prices.

Mortgage interest and rent costs were the major contributors to the 12-month change in the consumer price index (CPI).  The  cost of servicing a mortgage compared with the previous September rose by 30.6%, and  rents  increased  at a yearly rate of 7.3%.

Benjamin Tals's  ( Managing Director and Deputy Chief Economist. CIBC Capital Markets Inc.)  view, that price growth related to mortgage interest and rent payments are curbing consumers’ spending habits.  "Without factoring in,  huge year-over-year mortgage payment increases," Tal argued, the Bank of Canada is much closer to hitting its 2% inflation target than recent figures indicate.

With inflation coming down and the Christmas Season coming up, I don't feel the BOC will increase interest rates at this time.