While Canadian inflation has cooled in recent months, much of the relief has come from lower energy prices, a volatile component that the BoC tends to exclude when making policy decisions. "We suspect they (BoC) will only start trimming rates when they are convinced underlying inflation trends are set to move below 3%," said Doug Porter, chief economist at BMO Capital Markets. The BoC has made greater progress in slowing inflation than some major peers, including the Federal Reserve and European Central Bank.