Posthaste: Economists see hotter inflation ahead — and higher interest rates
https://financialpost.com/executive/...f-canada-rates
Quote:
With the expectations of hotter inflation, come predictions of higher rates from the Bank of Canada.
Wednesday’s numbers make a 75-basis-point hike from the Bank of Canada in July a “near certainty,” said CIBC’s Grantham, a view shared by most on the Street. But they also suggest that the peak in interest rates could be “higher than the 2.75% we had previously predicted.”
BofA expects the Bank will go even higher with the three-quarter point hike in July to be followed by a 50 bp hike in September. Their strategists now see the overnight rate ending 2022 at 3.5%, and reaching 4% by the end of 2023.
JPMorgan went so far as to say the possibility of a full-percentage point rate hike is now on the table after Wednesday’s data, reports BNN Bloomberg.
|
Analysts believe we see another 2 percentage point increase by the end of 2022, for an overnight rate of 3.5%. That'd be it's highest point since 2008.