All 31 economists surveyed by Bloomberg expect policy makers led by Governor Tiff Macklem to raise the benchmark overnight rate by at least 50 basis points, and most say it will be 75 basis points. That would bring the policy rate to 3.25 per cent, the highest among major advanced economies.
“A further softening in household demand is still required to bring inflation back to the bank’s 2 per cent target rate,” Royal Bank of Canada economists Nathan Janzen and Claire Fan said in a Sept. 2 report to investors. But “if household demand and inflation pressures wane as expected, the bank could be in a position to halt its tightening cycle soon.”
Monetary authorities around the world are slamming on the brakes to halt a post-pandemic surge of inflation. The Reserve Bank of Australia raised its policy rate by a half-percentage point Tuesday, and the European Central Bank is expected to deliver a 75-basis-point hike on Thursday. The US Federal Reserve meets later this month, with an increase of at least 50 basis points expected.
Most analysts expect policy makers to echo that hawkish language this week. “At this point central bankers still need to remain hyper-vigilant,” Royce Mendes, head of macro strategy at Desjardins Securities, said by email. “The Bank of Canada probably won’t be surprising markets with any dovish signals.”
Source: Financial Digest (financialdigest.net)
We need Trudeau to stop spending
A full point is too fucken much!
Ever increase in rates is another nail in the coffin for many people who are barely getting by as it is. It is OK if you have a bank account but majority of people live cheque to cheque
200bps shock and awe 💣
None! We know inflation is due to the Ukraine conflict and Covid! This crap is not the fix, end the damn war and take care of Covid and the rest falls in place.
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