[The Fonz]

https://www.bnnbloomberg.ca/bank-of-...ange-1.1773738

Bank of Canada sees higher odds of rates over 'neutral' 3% range

The policy rate may now go to the top, or even above, what the Bank of Canada considers its “neutral range,” estimated at between 2 per cent to 3 per cent.

...“This raises the likelihood that we may need to raise the policy rate to the top end or above the neutral range to bring demand and supply into balance,” Beaudry said in prepared remarks of the speech provided to journalists. He was speaking in Gatineau, Quebec.

...Half point increases are now fully priced in for policy meetings scheduled in July and September, with traders seeing the rate maxing out at about 3.25 per cent.

...“We see this aspect of potentially needing to go higher than we thought before and we still have the idea that we want to get there as quickly as possible so that could involve doing more moves in a row or it could involve bigger moves,” he said.

...“The bottom line is that the risk is now greater that inflation expectations could de-anchor and high inflation could become entrenched,” Beaudry said.