Canada's central bank is expected to announce its eighth consecutive rate increase on Wednesday, with most commercial banks forecasting a raise of a quarter-percentage point. That would bring the central bank's key interest rate to 4.5 per cent, the highest it's been since 2007.
The Bank of Canada is likely encouraged that headline inflation is slowing. After peaking at 8.1 per cent in the summer, the annual inflation rate has cooled to 6.3 per cent in December. Mendes said although he also expects this to be the last raise for now, Canadians shouldn't be too confident that interest rates won't rise further.
Orlando expects the Bank of Canada to say it doesn't foresee the need for more rate hikes, but that it will keep monitoring how economic conditions evolve. That way, the door is open for further rate hikes if necessary, he said.Since March, the Bank of Canada has embarked on one of the fastest rate-hiking cycles in its history. After slashing interest rates to near zero during the pandemic to stimulate a plummeting economy, in 2022 it hiked rates rapidly to clamp down on skyrocketing prices.
That means the full brunt of interest rate hikes has yet to be felt. Mendes said the Bank of Canada is trying to balance the risks of raising rates by too much or too little.The Bank of Canada will also release its quarterly monetary policy report on Wednesday, which will provide updated forecasts for economic growth and inflation.
Thieves Criminals
I feel so sorry for those people who paid $800,000 2% for a $150,000 house. I do. I really do. Not! See how 10% feels.
*probably the last one this month
Hopefully it’s a big one
Stick with the news and forget the predictions!
How dare you ask the rich to stop making money!
Now the BoC sounds like the Covid vaxx pushers “only one more” and another 5 more and Covid should be over. Only 5 more hikes from BoC
'probably'
Probably not the last one, lol.
Inflation is not easing though. We are still rising over 6% year to year officially. Even though basic necessities are rising at a higher rate then this.
It was the last one two hikes ago
I think it is time to replace the BoC with a spreadsheet. The spreadsheet will be more creative and add more value than the institution.
Brutal
The only ones winning over this is the criminal banks. Time for a windfall tax on the banking giants. Time to break up the banks.
Boc (bankrupter of Canada)
U.S. Fed's indicated it will raise rates to above 5%,& is not near the end of hikes. I'm skeptical Canada with it's inflationary low dollar will stop now at 4.5% contrary to the U.S. Having a lower int. rates than the U.S. devalues the $CAD & worsens imported goods inflation.
Sure it is
We know this is not true, inflation target at 2% and we are north of 6%, food inflation at 11.8%, we will be forced to match US fed as our dollar crashes further But you go collect your check from Katie Telford. Defund CTV
Crooks
😂🤣😂🤣CTV is a Government Shill an has no credibility!
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