The Bank of Canada is likely to hike its benchmark interest rate another half a percentage point on June 1, further raising the cost of borrowing to tackle “persistent” inflation levels not seen in 30 years, economists predict.
Economists who spoke to Global News all said they expect the central bank’s key interest rate to rise to 1.5 per cent on Wednesday.
Money markets are also pricing in a hike of 50 basis points, economists confirmed. Such a move would make the second consecutive jump of 50 basis points from the central bank.
The last time it raised rates half a percentage point in back-to-back decisions was nearly 25 years ago, in December 1997 and January 1998.