Rate hike calls gather pace ahead of October BoC decision
Additional comments made by Macklem at a recent speech in Halifax, she added, support the case for a preemptive rate adjustment.
“Two things probably have to happen if you’re too slow: One is, you’re going to have to raise rates very quickly,” he said.
“And secondly, you’re probably going to end up having to raise them more than if you moved earlier because things will have gotten more out of hand.”
Canada’s consumer price index rose to 3% year over year in August, exceeding the Bank of Canada’s 2% target. UBS projects that figure will reach 3.3% when Statistics Canada reports September data on October 19, just nine days before the next rate decision.
Manulife and Oxford join the shift
Manulife Financial has also moved up its timeline, now expecting hikes in October and December after previously calling for rates to hold through 2026 before rising in mid-2027.
