Inflation slowed sharply to 3.4% in May from 4.4% the prior month, but is well above the central bank's 2.0% target and not expected to reach it until early 2025. So the BoC will press ahead and hike the overnight rate by 25 basis points to 5.00% on July 12, according to 20 of 24 economists in the June 28-July 6 Reuters poll.
Will a 75 BPS hike slow down the BOC?
“We expect the BoC to deliver a 75 bps hike to 3.25%. We think the BoC will slow down the pace of its hikes beyond September, only taking the policy rate to 3.75% by the end of Q4-2022, although we see the risks as remaining tilted to a higher peak.
Is the BOC set to deliver another 50-basis point hike?
The BoC is set to deliver another 50-basis point hike raising the Overnight Rate to 1.50% with a hawkish policy statement. “We look for the BoC to deliver another 50 bp hike in June to bring the overnight rate to 1.50%.
How many times will the Fed hike interest rates this year?
Atlanta Fed President Raphael Bostic said Wednesday he anticipates hiking interest rates three or four times this year. However, he noted that “every option is on the table” when it comes to the central bank’s battle against inflation. Markets expect the Fed to hike rates at least five times this year.
