The Bank of Canada is expected to lift its benchmark interest rate by 25 basis points to 2.50% on Wednesday as persistent inflation concerns keep pressure on policymakers to tighten monetary policy, even as signs of economic weakness build. The move would be the central bank’s first rate increase since July 2023.
Economists Divided Over Rate Hike
In a Reuters poll, 19 of 34 economists forecast a hike, pointing to a divided outlook over the balance between price pressures and softer activity.
Balancing Inflation and Weak Growth
The decision will be read for how far the Bank is prepared to lean against inflation while growth indicators deteriorate.
