{"id":66260,"date":"2022-05-31T19:17:00","date_gmt":"2022-05-31T15:17:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=66260"},"modified":"2022-06-01T11:28:06","modified_gmt":"2022-06-01T07:28:06","slug":"bocs-hawkish-hike-anticipated-by-six-major-banks","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bocs-hawkish-hike-anticipated-by-six-major-banks\/05\/31\/market-updates\/","title":{"rendered":"BoC’s Hawkish Hike Anticipated By Six Major Banks"},"content":{"rendered":"\n

The Bank of Canada will announce its interest rate decision on Wednesday, June 1 and as financial markets get closer to the release time, expectations were published as forecast by the economists and researchers of six major banks, regarding the upcoming policy decision announcement.

The Bank of Canada is expected to decide another 50-basis point interest hike raising the Overnight Rate to 1.50% with a hawkish policy statement.

ING<\/strong>

\u201cA strong economy, booming jobs market, and elevated inflation argue for another \u2018forceful\u2019 50 bp hike. And the BoC is unlikely to stop there, with a red hot housing market and support from rising commodity prices suggesting it may be even more aggressive than the Fed this year. We expect CAD to benefit from BoC tightening in the medium-term.\u201d

TDS<\/strong>

\u201cWe look for the BoC to deliver another 50 bp hike in June to bring the overnight rate to 1.50%. With little uncertainty around the decision itself, the focus will shift to the policy statement where we expect a hawkish tone. The Bank will note that growth and inflation are both tracking above the April MPR, and repeat that rates will need to rise further. Global factors remain a crucial driver of the loonie, likely limiting the impact of the BoC’s anticipated 50 bp rate hike. As a result, we expect USD\/CAD to maintain the 1.26-1.30 range through the summer months but will look to fade extremes.\u201d

Citibank
<\/strong>
\u201cWe expect a 50 bp rate hike from the BoC taking the policy rate to 1.5%.\u201d


RBC Economics
<\/strong>
\u201cThe overnight interest rate is widely expected to rise by another 50 bps to 1.5% as the BoC continues its efforts to fight inflation. The hike will build on the BoC\u2019s 50 bp increase in April and 25 bp rise in March \u2013 with more increases likely in the months ahead.\u201d

CIBC
<\/strong>
\u201cThe BoC will have to sound hawkish. After all, non-standard 50bp hikes don\u2019t happen every day, particularly back-to-back. Moreover, inflation has continued to surprise to the upside. However, any admission that the housing market is already responding to higher interest rates should also be seen as an admission that excess demand is about to become less excessive. That is one of the key reasons why we think that, after another 50bp hike in July, the pace of hikes will slow down, and the Bank won\u2019t need to take rates any higher than the 2.5% mid-point of its neutral band to achieve 2% inflation sometime in 2023.\u201d

NBF
<\/strong>
\u201cThe BoC is widely expected to follow April\u2019s 50 basis point rate hike \u2013 which was the first in over twenty years \u2013 with another half-percentage-point hike, bringing the overnight target to 1.5%. With the announcement of QT already behind us and now underway, the focus will remain squarely on the Bank\u2019s guidance for its key interest rate. For now, the BoC appears set to quickly move towards its 2-3% neutral range (implying a third straight 50 bp move in July) but thereafter, the outlook is murkier. That said, we don\u2019t expect the Bank to show its cards on Wednesday. Instead, look for the Governing Council to retain flexibility.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of Canada will announce its interest rate decision on Wednesday, June 1 and as financial markets get closer to the release time, expectations were published as forecast by the economists and researchers of six major banks, regarding the upcoming policy decision announcement. The Bank of Canada is expected to decide another 50-basis point …<\/p>\n","protected":false},"author":13,"featured_media":33760,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[6991,6889,194,8970,8143,9686,7580,8207],"class_list":["post-66260","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-bank-of-canada","tag-cad","tag-gdp","tag-interest-rate-decision","tag-interest-rate-hikes","tag-jobs-market","tag-monetary-policy","tag-uncertainty"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/66260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=66260"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/66260\/revisions"}],"predecessor-version":[{"id":66304,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/66260\/revisions\/66304"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/33760"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=66260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=66260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=66260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}