Skip to main content

Policy rate heading toward 5%

The data released this week showed that higher interest rates are yet to have much of a negative impact on construction or consumption and that core inflation is proving stickier than anticipated. This has prompted us to upgrade our forecast for the Bank of Canada’s terminal policy rate to 4.75%, from 4.0%.

Canada Drop-In (26th October): We’re holding a briefing on the Bank of Canada decision shortly after the Wednesday 26th policy announcement. Register to join our discussion about how close the Bank might be to pausing its tightening cycle, housing market risks and whether interest rates could be cut next year. Register now.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access