Summary
[Inflation and housing prices remain high, and more economists expect the Bank of Canada to raise interest rates again]Some economists are beginning to lean towards thinking that the Bank of Canada will raise interest rates in June or July, as more and more evidence points to , the real estate market is gaining momentum, while inflation remains stubborn. Of Canada’s six largest lenders, Scotiabank was the first to forecast a 25 basis point hike to 4.75 percent at the central bank’s next policy meeting on June 7.
Some economists are starting to lean toward a June or July rate hike from the Bank of Canada, as evidence mounts that the housing market is gaining momentum while inflation remains stubborn.Canada’s six largestbankIn, ScotiabankThe first to predict that the central bank will raise interest rates by 25 basis points to 4.75% at the next policy meeting on June 7.CitigroupVeronica Clark of The New York Times had already made the same prediction earlier. Capital Economics now expects a rate hike at its July meeting and said a quick resolution to the U.S. debt-ceiling impasse could prompt the Bank of Canada to raise rates at its next two meetings.This will make the policyinterest rateIt reached 5%, the highest level since 2001.
(Article source: Financial Associated Press)