Bank of Canada hikes likely won’t continue into 2024: expert

One markets expert thinks the Bank of Canada will hike interest rates at least once more in 2023, but won’t raise them again next year.

Earl Davis, head of fixed income and money markets at BMO Global Asset Management, told BNN Bloomberg that he believes “2023 is the end of hikes,” but stubborn inflation will keep rates higher for longer.

“Rates are going higher because (the Bank of Canada) said they need to fight inflation and ensure inflation stays down,” Davis said in a Tuesday television interview.

“Unfortunately, the only tool that they have to do that is interest rates.”