Investors expect the Bank of Canada will start an aggressive series of interest rate hikes this week as the central bank launches its campaign to wrestle inflation down from a three-decade high.
Trading in overnight swaps markets suggests there’s about a 70% chance policy makers led by Governor Tiff Macklem will raise the benchmark interest rate to 0.5% from its emergency low of 0.25% in a decision due Wednesday morning. It would be the first of likely six moves to increase borrowing costs over the next 12 months.
