Reuters poll: High risk that Bank of Canada will raise rates at least once more

A Reuters poll on the Bank of Canada:

  • High risk that Bank of Canada will raise the key rate at least once more. 12 of 20 economists
  • Bank of Canada to hold overnight interest rates steady at 5.0% on September 6. 31 of 34 economists.
  • 3 economists say a 25 basis point rate hike to 5.25% in September
  • 8 of 34 economists expect one more rate hike to 5.25% by the end of the year (up from 1 in the July poll)
  • 24 of 34 expect the central bank will keep its policy rate or higher until at least the end of 2024
  • The median shows 50 basis points worth of cuts by the end of June next year
  • House prices to fall -5% in 2023 and rise by 2% in 2024. That compares to -8.9% and +2% in the June poll

Inflation rose more than expected to 3.3% in July. The bank Canada targets 2%.

The Bank of Canada will announce their rate decision next week (Wednesday, September 6 at 10 AM ET). Futures are implying no change next week, but remain split over whether rates were rise one more time in 2023.

This article was written by Greg Michalowski at Source