The policy statement from the Bank of Canada this morning highlighted that ultimately it will raise rates at some point, this year or next year, but even then it said the extent of any policy tightening would need to be carefully considered. We still think the Bank will hold its policy rate at 1% for the remainder of this year and next. If we are wrong, rates are unlikely to go up more than once or twice before the economic recovery will show clearer signs of struggling.
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