Bank of Canada Set to Hike Rates Again Amid Inflation Slog

  • Economists, traders expect Macklem to raise key rate to 5%
  • Officials will have to explain why conditional pause failed
Part of Tiff Macklem’s task will be to explain why the economy hasn’t been more affected by elevated rates.Photographer: Cole Burston/Bloomberg
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The Bank of Canada is likely to increase interest rates for a second consecutive meeting, bringing borrowing costs to a level not seen in 22 years.

Economists and markets expect Governor Tiff Macklem and his officials to raise the benchmark overnight rate to 5% on Wednesday at 10 a.m. in Ottawa. Most major commercial lenders in Canada predict the hike will be the last in this cycle.