Scotia Sees Bank of Canada Hiking Rate to 2% to Quell Inflation
- Lender predicts first move next week, five more by year end
- Consumer price gains have hit highest level in three decades
Canadian flags fly outside the Bank of Nova Scotia building in downtown Toronto.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Bank of Nova Scotia says Canada’s central bank will begin an aggressive round of monetary tightening next week to control inflation, bringing its policy rate to above pre-pandemic levels by the end of this year.
The Toronto-based lender is now projecting the Bank of Canada will hike its overnight policy rate to 2% in 2022, from the current emergency level of 0.25%, according to a report published Wednesday, shortly after Statistics Canada said inflation hit its highest in three decades.