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More Economists Say Bank of Canada Is Poised to Hike Rates Soon
Some economists are starting to lean toward a Bank of Canada hike, either in June or July, as evidence mounts that the housing market is gaining momentum and inflation is proving stubborn. Bank of Nova Scotia became the first of Canada’s six largest lenders to forecast a 25 basis-point rise in the overnight rate to 4.75% at the next central bank meeting on June 7. Citigroup Inc.’s Veronica Clark had previously made the same call. Capital Economics now expects an increase at the July meeting, and says a quick resolution to the US debt ceiling impasse could spur hikes at each of the next two meetings. That would ... (full story)