Expectations are rising that the Bank of Canada will indeed raise its benchmark interest rate this week as it considers the effect of higher energy prices on the economy.
Financial market odds for a rate hike were just over 83 percent as of Monday afternoon, according to LSEG Data & Analytics. The central bank’s planned interest rate announcement on Wednesday will also include an updated monetary policy report.
The Bank of Canada has held its policy rate at 2.25 percent for seven consecutive meetings.
RBC economists said in a note to clients Thursday that they are now expecting a quarter-point hike as the central bank faces a “pivotal decision amid evolving economic conditions.”…