Bank of Canada hints as many as six rate hikes in new hawkish survey

Canada faces an increasing inflation danger as the country’s economy reaches its limits. The Bank of Canada has started to limit its interest rates and the new updates will come into play by next week. 

Governor Tiff Macklem and Monday policy-makers are expected to raise loan costs in their policy decision by January 26 as stated by the economists at TD Securities Inc. and Laurentian Bank. While the Bank of Nova Scotia had already said that the central bank “cannot afford” a longer delay in the hike, the Bank of Montreal is planning to wait to implement the hike until March and April this year. 

Hence, a 75% chance of Macklem moving by next week is predicted by the markets; meanwhile, the trades are pricing that the rate hikes are to increase six times by the end of the next year. 

The Bank of Canada recently conducted a fourth-quarter survey that revealed that there is a massive labor shortage in the country along with inflation and the economy running dry. The business executives who took the survey hinted at strong demand for labour.