Central Bank of Canada To Raise Key Interest Rate To 4.25% – CIBC

bank of canada

The Central Bank of Canada (BoC) raised the key interest rate by 50bps to 3.75%, surprising market participants that expected a more significant increase. However, analysts at the Canadian Imperial Bank of Commerce, CIBC still expected the rate to peak at 4.25%, despite the “slight dabbing of the brakes” compared to previous hikes. 

“The Bank of Canada hiked interest rates by a further 50bp to take the overnight rate to 3.75% today, although that move reflected a slight dabbing of the brakes relative to the prior pace of rate increases and what was expected by the market heading into today’s decision (75bp was almost fully priced in). The press conference emphasized avoiding the damaging consequences of an overshoot and the need to slow rate increases in the face of an economy that has started to slow in response to past increases.”

“While the Bank of Canada slightly under-delivered today in terms of the size of rate hike delivered, its downgraded view of potential growth and continued commitment that interest rates “will” need to rise further doesn’t suggest to us that the peak in interest rates will be any lower than we were expecting heading into today’s announcement.”

“The press conference opening statement suggested that we are getting closer to the end of the hiking cycle and that, barring a large surprise, steps of 75bps are now behind us. This is consistent with our forecast of a peak rate of 4.25%, and that rates will have to stay at that level at least through the end of 2023 to help bring inflation back down to target.”

This Post Has 2 Comments

  1. e-commerce

    Wow, awesome weblog format! How long have you been blogging for?

    you made blogging look easy. The overall glance of your website is fantastic,
    let alone the content material! You can see similar here najlepszy sklep

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.