Carleton is going to give me hell for this but:

I was able to test my Rapha Softshell out last night in light and then very heavy rain. It took the light rain like champ and the underarm zipped vents ensured I didn't overheat. When the weather really started getting nasty: windy, heavy rain and cold - it kept on going. It took a good ~hour in the downpour for water to start to soak the fabric. Even with some moisture seeping in, I remained pleasantly warm - possibly because of a combo of hard effort and excellent wind blocking.



I had even better results with their dedicated Rain Jacket, which is water proof not just water resistant (like the soft shell). It breathes incredibly well while still being totally wind and water proof - though it's less of a 'city riding' piece: slim cut, super light, etc.

A much more budget alternative, that I purchased on impulse from BT and was reasonably happy with is the Cutter rain jacket:


http://www.cutterbike.com/?p=732

Having a hood is pretty sweet, it's reasonably breathable (though the fleece lining can get a bit warm if you are doing anything faster than a leisurely pedal to the park), fits sort of baggy (which is odd since it's technically 'cycle cut'), and overall pretty damn cheap.