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22 Apr 2022
Bank of Canada Hints at Possibility of 75 Basis Point Interest Rate Hike
The Index Today
The Bank of Canada has hinted at a higher interest rate hike in the works as the country battles its highest inflation figures in three decades.
According to Bloomberg News, Bank of Canada Governor Tiff Macklem contended that he was “not going to rule anything out”, when asked about implementing a rate hike beyond the 50 basis point. This comes after the central bank instituted a 50 basis point interest rate raise at the G7 meeting the previous week.
On Thursday, Macklem said from Washington where he is currently attending the World Bank and IMF meetings, “We’re prepared to be as forceful as needed and I’m really going to let those words speak for themselves.” This has spurred investor anticipation of the Bank of Canada potentially increasing interest rates by 75 basis points on June 1, reported Bloomberg News.
This comes as central banks around the world continue to hike interest rates to counter soaring inflation with the U.S. Federal Reserve set to implement a 50 basis point hike at its next policy meeting in May.