BoC likely to mirror 0.75% U.S. Fed hike next month: Economists

Economists say the Federal Reserve raising its key interest rate by three-quarters of a point -- its largest hike since 1994 -- increases the odds of the Bank of Canada following suit next month.

The U.S. bank authority announced the Wednesday move will shift the country's benchmark rate to a range between 1.5 per cent and 1.75 per cent as it tries to tame soaring inflation.

While the Bank of Canada recently upped its interest rate by a half point two times in recent months, taking it to 1.5 per cent in June, governor Tiff Macklem has hinted he is prepared to act "more forcefully."

Josh Nye, a senior economist with RBC Economics, believes Macklem is now even more likely to mirror the Fed.