No further rate hikes expected this year, BoC survey of market participants finds
Global News
The Bank of Canada won't raise rates again this year, according to a survey of market participants released by the central bank on Monday.
The Bank of Canada will not raise rates again and will start cutting a little later than previously anticipated, according to a survey of market participants released by the central bank on Monday.
The BoC’s second-quarter survey, conducted from June 8 to 19, showed a median of the participants expect the bank to hold interest rates at a 22-year high of 5.00% until the end of 2023, before starting to cut rates in March.
In the previous survey released in April, when the BoC’s key policy rate was at 4.50 per cent, median expectation was for a rate cut in January. Money markets still see a chance for another rate hike this year.
A median of 25 participants now also predict a 0.7 per cent gross domestic product growth at the end of 2023, instead of a 0.1 per cent contraction forecast in the last survey.
Earlier this month, the BOC said there was excess demand in the economy as it raised its GDP forecast and extended the timeline for inflation to return to the bank’s 2% target.
The bank has hiked rates 10 times since March 2022 and said it could raise rates further because of the risk of inflation stalling above its two per cent target.
In the survey release on Monday, the median forecast for annual inflation is for 3.0 per cent at the end of this year, compared with 2.7 per cent previously. Expectations for the inflation rate to drop to 2.2 per cent by end-2024 were unchanged.
The central bank expects inflation to remain around 3% over the next year before dropping to its target by mid-2025, six months later than it previously anticipated.
Dock workers in both British Columbia and Montreal have now been locked out as negotiations stall between unions and employers. Here's what that means for Canadian consumers.
Chrystia Freeland pointed to Canada's experience with incoming U.S. president Donald Trump, as well as alignment on Chinese tariffs, as helping Ottawa navigate trade negotiations.
Canadian TikTok creators fear that the federal government's decision to shut down the app's Canadian operations will erode their support system and limit earning potential.
Canada's labour market added roughly 15,000 jobs in October, enough to keep the unemployment rate steady at 6.5 per cent in the month.
A weaker Canadian dollar tied to Donald Trump's victory could be inflationary north of the border, which could make our central bank more hesitant to cut rates too quickly.
The employee was indicted for allegedly distributing personal information of TD Bank customers, the latest criminal probe to hit the U.S. arm of the Canadian financial institution.
Stock markets were rising broadly higher on news of Donald Trump's U.S. election victory on Wednesday. Here's how investors say you should adjust your portfolio.
The Bank of Canada's Carolyn Rogers says improving housing affordability ultimately requires reaching a balance between supply and demand, which she says will take time.
Donald Trump was previously a crypto skeptic but changed his mind and took a favorable view of cryptocurrencies ahead of the election.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.
Canadians continue to make payments on their mortgages, but there are signs of stress bubbling up on other credit products, which CMHC warns could continue to spread to home loans.