The Bank of Canada (BoC) has made headlines once again. The Bank raised the overnight rate by 25 basis points (bps) to 4.75% as the conditions it had set to maintain a pause on interest rate hikes had been violated. The BoC will not step back to the sidelines, instead keeping the door open to further interest rate hikes should data reveal ongoing resiliency. Post-announcement, the Canadian two-year yield jumped by 20-bps to 4.58 (down to 4.50 by the end of the week) while the Canadian dollar rallied half a cent to 0.75 cents U.S. and has largely held at this level.