Bank of Canada look ahead: Economists expect seventh straight rate hike

Economists are forecasting the Bank of Canada will hike interest rates for the seventh-straight time on Wednesday.

According to economists’ estimates tracked by the Bloomberg terminal, the average forecast is a 50-basis-point (bps) increase from the Canadian central bank, but several experts are also leaning towards a 25-basis-point increase.

“We're looking for a 25bps hike tomorrow but the consensus is almost evenly split between 25bps and 50bps,” said Josh Nye, senior economist at the Royal Bank of Canada in a phone interview on Tuesday.

“That's kind of what Macklem framed his decision as back in October, 25bps or 50bps, and I mean their guidance is pretty clear that there they were planning more rate hikes as of October so we think they will follow through with that.”