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.

Is another rate hike coming?

Though many economists are doubtful another rate hike is coming, money markets are still not shifting their bets toward a possible cut as they did in January, both because of the uncertainty of the inflation outlook and the bank’s threat to raise again if needed.

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%.

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.