Bank of Canada Watch A smaller 25 bp hike with a hawkish message The Bank of Canada is set to raise interest rates by a smaller 25 bp next week. While many will be looking for clues that this will be the end of the tightening cycle, the key risk to market pricing... 18th January 2023 · 7 mins read
Bank of Canada Watch Bank to drop down to 25 bp hike The easing of the three-month annualised measures of core inflation in October and signs of broader disinflationary pressure ahead lead us to think the Bank of Canada will drop down to a 25bp interest... 30th November 2022 · 6 mins read
Bank of Canada Watch Bank likely to opt for another 75 bp hike Governor Tiff Macklem has told us that the Bank of Canada needs to see firm evidence of improvements in core inflation and near-term inflation expectations before it slows the pace of its tightening... 19th October 2022 · 6 mins read
Bank of Canada Watch 75 bp hike despite slowing economy GDP growth and inflation will be lower than the Bank of Canada anticipated this quarter, but the odds still seem to favour a 75bp policy rate hike next week to 3.25%. The risks to our forecast that... 1st September 2022 · 7 mins read
Bank of Canada Watch A more forceful 75 bp hike The recent acceleration in wage growth and rise in long-run inflation expectations leave little doubt that, despite the drop back in commodity prices, the Bank of Canada will follow through with a... 6th July 2022 · 6 mins read
Bank of Canada Watch Another forceful rate hike coming We expect the Bank of Canada to hike its policy rate by another 50bp next week, to 1.50%, and to drop a heavy hint that a final 50bp hike is coming at the following policy meeting in mid-July. We... 25th May 2022 · 7 mins read
Bank of Canada Watch A “forceful" 50 bp hike and the start of QT We now anticipate that the Bank of Canada will raise its policy rate by 50 bp next week and announce the start of quantitative tightening. Nonetheless, we remain sceptical of the view priced into... 6th April 2022 · 7 mins read
Bank of Canada Watch Bank of Canada to hike rates and start QT We expect the Bank of Canada to kick off its tightening cycle next week with a 25bp rate hike and an announcement that it will begin quantitative tightening. Amid signs of broadening inflationary... 23rd February 2022 · 7 mins read
Bank of Canada Watch Bank of Canada to tee up March hike Amid growing wage pressures, we now forecast that the Bank of Canada will raise interest rates this quarter. While we wouldn’t rule out a hike next week, our base case is that the Bank will deliver a... 19th January 2022 · 7 mins read
Bank of Canada Watch Bank to keep policy rate guidance unchanged Growing wage pressures and the renewed strength of house prices are likely to concern the Bank of Canada but, with oil prices plunging in the past week due to fears about the Omicron variant, we doubt... 1st December 2021 · 7 mins read
Bank of Canada Watch Bank to call time on QE We expect the Bank of Canada to call time on its net asset purchases next week by transitioning to the “reinvestment phase” of QE. Widespread labour shortages suggest economic slack is being rapidly... 21st October 2021 · 7 mins read
Bank of Canada Watch Bank to keep policy unchanged as recovery stalls The unexpected contraction in second-quarter GDP means the Bank of Canada is likely to wait until October before reducing the pace of its asset purchases again, rather than pushing ahead with tapering... 1st September 2021 · 7 mins read
Bank of Canada Watch Bank to taper asset purchases As it is widely anticipated that the Bank of Canada will taper its asset purchases next week, the more significant development may be the introduction of a new range of indicators that the Bank will... 7th July 2021 · 8 mins read
Bank of Canada Watch Bank to wait until July before tapering again Inflation surpassed the upper limit of the Bank of Canada’s target range in April but, with second-quarter GDP growth set to be weaker than the Bank expected and Governor Tiff Macklem concerned about... 2nd June 2021 · 7 mins read
Bank of Canada Watch Bank to trim asset purchases despite third wave The Bank of Canada is set to cut the pace of its asset purchases next week. While it will also upgrade its GDP forecasts, we expect it to make an offsetting change to its estimate of the economy’s... 14th April 2021 · 7 mins read
Bank of Canada Watch Bank to turn forward guidance up to eleven Although the economy has been stronger than expected, we doubt that the Bank of Canada is about to become more hawkish. Instead, we think the Bank will use its policy statement next week to double... 3rd March 2021 · 7 mins read
