Canada July Rate Hike Odds Jump After Poloz Restates Bias
- Swaps trading suggests investors placing 69% odds of July rise
- Poloz tells CNBC that 2015 rate cuts have done their job
Stephen Poloz
Photographer: Chris Roussakis/BloombergThis article is for subscribers only.
The Canadian dollar rallied to a four-month high and investors ramped up bets for a rate increase as early as next month after Bank of Canada Governor Stephen Poloz reiterated the central bank may be considering higher rates.
The nation’s currency jumped 1.2 percent to C$1.3038 per U.S. dollar at 4:50 p.m. in Toronto, the strongest level since February. The loonie traded at 76.7 U.S. cents. Swaps trading suggests investors are placing a 69 percent chance of a rate hike at the bank’s July 12 rate decision, up from 39 percent Tuesday.