“The Bank of Canada is at risk of falling behind the curve with inflation and wage expectations rising with large increases in housing costs and may consider a more front-loaded approach to raising rates in the hope that this will mean our forecasts.” terminal rate, 2.50% may be enough to contain the price pressure,” he said.
Meanwhile, Nikola Gradojevic, finance professor at the University of Guelph, believes holding back until the fall is correct would be the right choice.
“The pandemic is clearly seasonal and is expected to become ‘endemic’ once the wave of the Omicron variant ends,” he said. “Sure, there is an urgent need to fight inflation, but the pandemic is more important than that.”
We will provide more feedback on the interest rate decision later and the full Finder Report is available at https://www.finder.com/ca/bank-of-canada-interest-rate-forecast.