BoC could leave 'breadcrumbs' to pause rate hikes: Desjardins
BNN Bloomberg
The Bank of Canada can’t take its foot off the gas just yet, but a new report from Desjardins said the central bank could start leaving “breadcrumbs” to hint at a possible easing in future interest rate hikes.
“The Bank of Canada is in no position to pivot just yet. Instead, expect policymakers to drop some breadcrumbs about the potential for an earlier pause than markets expect,” said Royce Mendes, managing director and head of macro strategy at Desjardins, in a note to clients Tuesday.
Market data shows the central bank is expected to deliver a supersized three-quarter-point hike at its meeting Wednesday as inflation continues to accelerate.
Mendes called the dearth of communication from the Bank of Canada in recent weeks “deafening” and said that likely means the bank will “do exactly what is priced in.”