Higher interest rates still needed to tame inflation in Canada

Vancouver, Toronto, Calgary

2022/12/09

According to BoC, inflation ↓ recently, but we have yet to see a generalized decline in price pressures. The BoC ↑ rates by 50 basis points by early-Q3, lifting the policy rate to 3.75%. It also forecast growth would stall from Q4 2022 through the middle of 2023. Money markets have fully discounted 25 basis points of further tightening at BoC’s next policy decision on Dec 7. Money markets have fully discounted 25 basis points of further tightening at BoC’s next policy decision on Dec 7.