Canada Economics

Canada Economics Update

17 January, 2018

Bank of Canada likely to hike interest rates further

The Bank of Canada’s raised interest rates to 1.25% today, from 1.00%, and its more upbeat economic outlook suggests that it will hike rates again later this year, probably in April. In contrast to the consensus, we wouldn’t bet too heavily on further rates hikes beyond the spring, however. The economy is still heavily dependent on housing and debt which, we still firmly believe, will eventually upend the economy and prompt a reversal in monetary policy before year-end.

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