GDP data suggests one more Bank of Canada rate hike then a pause, analyst says

Canada’s latest economic data numbers show the country has a “decent chance” of seeing another interest rate hike next month, followed by a lengthy pause, according to one industry analyst.

Preliminary data from May shows Canada’s gross domestic product grew by 0.4 per cent for the month on the back of manufacturing, wholesale trade and real estate. 

Bipan Rai, global head of FX Strategy at CIBC Capital Markets, believes this latest data suggests the Bank of Canada will issue another rate hike in the near future.

“At the very least, to us it suggests there’s still further tightening that needs to happen,” he told BNN Bloomberg. “We’re projecting one more rate hike on balance for the rest of this year.”