More economists and traders are now anticipating that the Bank of Canada will raise interest rates at its next meeting. This shift comes after recent surveys from the central bank revealed an uptick in inflation expectations.
The Bank of Montreal, RBC Dominion Securities, and Desjardins Group all revised their forecasts on Monday, predicting that Governor Tiff Macklem and his team will likely increase borrowing costs to 2.50% during the October 28 meeting.
The growing consensus reflects concerns over rising inflation, which has prompted financial institutions to adjust their expectations. The move would mark a significant step in the central bank's monetary policy.