Why did the BOC raise rates 10 times since March 2022?

Earlier this month, the BOC said there was excess demand in the economy as it raised its GDP forecast and extended the timeline for inflation to return to the bank’s 2% target. The bank has hiked rates 10 times since March 2022 and said it could raise rates further because of the risk of inflation stalling above its two per cent target.

Is a BOC rate hold prudent in June?

Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content. Majority of experts believe a BoC rate hold is prudent in June with more than a third anticipating a recession in 2023. 73% — Predict the Bank of Canada will RAISE the overnight rate on July 12, 2023

Will the BOC hike the overnight rate on July 12?

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 the BOC cut interest rates in January?

In the previous survey released in April, when the BoC’s key policy rate was at 4.50 per cent, median expectation was for a rate cut in January. Money markets still see a chance for another rate hike this year.