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  • Writer's pictureMegan Jayne

"Bank of Canada Maintains Policy Rate, but Sets Stage for Increase"

Quick summary of an informative article i found today

  • With expectations mounting that monetary policy will be normalizing sooner than previously anticipated, financial conditions, while still accommodative, have been tightening a bit in anticipation of coming rate hikes.

  • Overall, the Bank projects the Canadian economy will expand by 4% and 3.5% in 2022 and 2023 respectively

  • The bottom line of today’s announcement, reading through all of the technical jargon, is the Bank will be raising rates at its next scheduled announcement in March, which is sooner than even the earliest date it had previously suggested.

  • Markets are currently pricing in between four and five interest rate increases over the remainder of 2022, with, not surprisingly, close to a 100% chance of the first hike in March.

  • The Bank of Canada’s next scheduled interest rate announcement will be on March 16, 2022.

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