Economists call the first Bank of Canada move in a year
Benjamin Reitzes, Canadian rates and macro strategist at BMO, told Reuters the Bank of Canada would “rather make the mistake of hiking a little bit too early” than fall behind the curve.
Reitzes said moving early could mean less tightening overall, and that policymakers want to avoid repeating what happened in 2021 and 2022, he told the outlet.
In an October preview quoted by Mortgage Professional America Canada, Frances Donald, chief economist at RBC in Toronto, and Nathan Janzen, assistant chief economist, wrote that they hold “very low conviction on the idea of a rate hike this soon.”
Donald and Janzen said the central bank is almost equally likely to use this meeting to signal a hike in December or January, with the Canadian economy “improving, but still not strong.”
Canadian Mortgage Professional reported on October 20 that Stéfane Marion of National Bank of Canada expects the bank to refrain from hiking.
