Marketing Info

BoC will hike rates today, says panel of economists

With inflation heating up, the Bank for Balance Act is raising rates to quell price acceleration without destroying the finances of millions of Canadians who are laden with debt.

The first increase since 2018 will likely set off one of the fastest upward trajectories for Canadian interest rates in three decades.

“The hike this week will be the first step in the most consequently tight cycle in decades,” Royce Mendes, head of macro strategy at Desjardins Securities Inc., told Bloomberg. “Central bankers need to slow red hot inflation without causing a recession.”

The 10 am announcement is expected to include further reduction in the central bank’s balance sheet, eased by its massive holding of government bonds acquired as part of the economy-saving response to the pandemic.

housing market

One of the biggest stories of the route to higher interest rates is how it will affect the Canadian housing market.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button