The Bank of Canada’s latest surveys indicate that both firms and consumers expect higher inflation, with businesses planning to pass increased input costs onto customers. These inflationary pressures may persist above the 2% target, influencing the central bank’s monetary policy decisions. Markets now interpret these expectations as supportive of a potential tightening, with increased probability of a 50+ bps rate hike scenario. The October interest rate announcement and upcoming statements from Governor Tiff Macklem will be key in shaping the central bank’s monetary policy direction.
Source: Read the original article
Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
