was up 123.65 points, or 0.61%, at 20,350.44.in Canada fell to a 27-month low of 2.8% in June on year-over-year basis. Analysts polled by Reuters had forecast annual inflation to drop to 3.0% from 3.4% in May.
"This would be welcome news and it might provide a bit of relief so that the Bank of Canada can get back in the pause mode," said Greg Taylor, chief investment officer at Purpose Investments. Further supporting the view of a pause in rate hikes, Colin Cieszynski, chief market strategist at SIA Wealth Management said, "it does give them room to pause again, particularly if we start to see things like wages and services coming down."
Last week, the BoC raised rates to a 22-year high of 5.0% and said it could hike further if fresh data shows inflation is stalling above its 2% target.The odds of the BoC raising interest rates again in December fell to 19% from 25%, the futures tied to money market showed.