In his speech today, Bank of Canada Governor Stephen Poloz showed that he remains confident in the economy, suggesting that another interest rate hike is coming this year. That said, we still expect the knock-on effects from a housing downturn to worsen, eventually prompting the Bank to abort its rate hike cycle next year. After ending this year at 1.25%, we expect rates to be cut to 0.50% in 2018.
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