Bank of Canada has room to stop hiking before U.S. Fed, survey shows
BNN Bloomberg
The Bank of Canada has leeway to end its interest-rate hiking cycle in coming months even if the U.S. Federal Reserve keeps pushing borrowing costs higher next year, according to economists.
Governor Tiff Macklem and his officials can comfortably leave their benchmark rate as much as 100 basis points lower than that of their southern counterparts, a Bloomberg survey shows.
More than half of the 16 respondents say the Bank of Canada won’t end up signaling a pause. But Macklem is nonetheless expected to stop hiking after this month’s meeting or in January, leaving borrowing costs at 4.25 per cent.
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