Bank of Canada Hikes Rates: What to Expect Next

The Bank of Canada's decision to hike interest rates has left everyone wondering how high Canadian rates will go.

Economists who previously called for rate cuts are now predicting hikes sooner than expected, but there's a wrinkle - the Bank of Canada's preferred inflation gauge is still below target at 1.95 per cent.

Despite this, some experts believe that core inflation can be misleading and that other factors such as oil prices and tariffs could justify further rate hikes.

Historically, the Bank of Canada has tended to hike rates in clusters, with an average hiking cycle lasting 2.5 years and consisting of over 2.75 percentage points of increases.