Amid sustained inflationary pressures and supply-chain issues, the Bank of Canada will likely implement three rate increases in 2022 beginning in April, according to a new report by RBC Economics.
This is because while the central bank has committed to freezing its rates until economic slack is absorbed, it might have reconsidered that assurance last month when it said that it was open to earlier hikes despite downgrading its growth projections, said Josh Nye, report author and RBC senior economist.
“The BoC seems to be putting more stock in strong employment data than soft GDP readings, and brought forward its estimate for when economic slack will be absorbed next year,” Nye said. # SANDI HALPERN # SOLD # LEASED # INTEREST RATE INCREASE
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