BoC could leave 'breadcrumbs' to pause rate hikes: Desjardins - BNN Bloomberg

The Bank of Canada can’t take its foot off the gas just yet, but a new report from Desjardins Securities Inc. said the central bank could start leaving “breadcrumbs” to hint at a possible easing in future interest rate hikes.

Market data shows the central bank is expected to deliver a supersized three-quarter-point hike at its meeting Wednesday as inflation continues to accelerate. “It seems like policymakers were uncomfortable being the leaders of the central bank pack on a jumbo rate hike. But, after seeing the Fed pull off a three-quarter point rate increase without much fallout, the Bank of Canada is primed to follow suit,” he said.earlier this month found consumers and businesses expect inflation to run hot for longer than what the central bank anticipated.

“The recent weakness is only the tip of the iceberg. It will take time for higher rates to feed through more noticeably to economic activity and for that cooler demand to eventually feed through to lower inflation,” Mendes said.

Why should they take their “foot off the gas” though?

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