Bank of Canada expected to keep spotlight on inflation Wednesday
Posted December 7, 2021 10:58 am.
As the Bank of Canada nears what is believed to be an aggressive campaign of interest rate hikes, investors say there’s only a small chance it will make a major announcement Wednesday.
According to Bloomberg, a move in January is more likely because that decision includes a new set of quarterly economic projections.
“Waiting at least one more month gives the bank time to reassess new uncertainties around the omicron variant of Covid-19. The recent flooding in British Columbia also adds to potential downside risks to the outlook,” Bloomberg said.
While many await the official decision, Bank of Canada is expected to continue to put the spotlight on inflation.
It comes following a strong run of economic data since the last policy decision in October, which has only cemented view that rate hikes are imminent.
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Policy makers led by governor Tiff Macklem have already ended a bond-buying stimulus program and hinted at an accelerated timeline for an increase in borrowing costs.