The Globe and Mail reports in its Wednesday edition that with last week's interest rate hike, the Bank of Canada has returned the overnight rate to 1 per cent. The Globe's guest columnist Craig Alexander calls this decision sensible, because it removes the additional monetary stimulus provided in the wake of the commodity price downturn 2-1/2 years ago. The economy is set to grow by close to 3 per cent this year. The pace of growth is rapidly eating up the slack in the economy. The key question is whether the BOC needs to hike rates further. The Conference Board of Canada believes continued growth in the economy will eventually warrant further tightening by the end of 2018, but there is no urgency to continue hiking at the next announcement on Oct. 25. Markets are pricing in a good chance of a further tightening in October. This reflects the strength in the economy, but also the fact that this decision day is accompanied by an updated economic forecast and a press conference that would allow the bank to fully articulate its views. The BOC's Sept. 6 announcement said that the latest policy tightening only reduced, "some of the considerable monetary policy stimulus in place."