From Seekingalpha · ING Economic and Financial Analysis · · 40s
Bank of Canada Hike Expected
Bank of Canada likely to hike rates again after today's 25bp increase.
In brief
Bank of Canada likely to hike rates again after today's 25bp increase. Bank of Canada raised policy rate to 2.5% today, expecting next hike in early 2027. Originally reported by Seekingalpha.
BoC rate hike today
The Bank of Canada raised the policy rate by 25bp to 2.5% today, matching market expectations.
Inflation risks noted
Policymakers acknowledge rising inflationary risks, and while not recommitting to a rate path, the indications are this won’t be a one-and-done hike.
Next hike expected
We expect the next move in 1Q27, with risks of an earlier one in December. We remain cautious on CAD's upside risks.
The big picture
Bank of Canada raised policy rate to 2.5% today, expecting next hike in early 2027.
