Bank of Canada Hits The Peak

Jan. 23, 2023 2:02 PM ET, , , ,
ING Economic and Financial Analysis
4.54K Followers

Summary

  • The BoC is set to raise rates one last time on Wednesday with a 25bp hike, taking the overnight rate to 4.5%.
  • Economic activity is slowing and inflation is coming down and what is likely to be characterised as a pause for assessment is set to mark the peak for rates.
  • Rate cuts will be on the agenda later in 2023. The initial CAD reaction may be rather contained.

Imperial Bank of Canada, Calgary, Alberta

Walter Bibikow

By James Knightley & Francesco Pesole

BoC set to hike one last time

At a speech on 12 December, Governor Tiff Macklem warned that "if inflation sticks, much higher interest rates will be required to restore price stability", adding that the "greater risk" is

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