Odds of Bank of Canada Rate Hike Climb After Poloz’s Remarks

Investors are raising bets the Bank of Canada will move ahead with an interest rate hike next month, after Governor Stephen Poloz reiterated his outlook for higher borrowing costs.

Odds of a hike at the July 11 rate decision jumped to more than 70 percent Thursday, from just over 50 percent a day earlier, after Poloz told reporters he expects to continue raising interest rates in spite of mounting trade tensions because inflation has already hit the central bank’s 2 percent target. The Canadian dollar gained 0.7 percent to C$1.3256 per U.S. dollar at 10:47 a.m. in Toronto.