The central bank is expected to raise the policy rate by 50 or 75 basis points as part of the Bank\u0027s strategy of front\u002Dloading rate hikes
The central bank is expected to raise the policy rate by 50 or 75 basis points as part of the Bank’s strategy of front-loading rate hikes, but comes at a time when recession calls are growing louder. Some economists are expecting the Bank to take its foot off the gas following this rate decision.Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday.
“But we expect the accompanying statement or press conference to at least implicitly concede that future adjustments won’t be as large,” they added. “They might even spell out that the central bank will be moving in December to the more finely balanced, decision-by-decision approach which Macklem alluded to recently.
“Overall, central bankers are in uncharted territory and there are many unknowns,” wrote Mendes and Figueiredo. “But we expect them to acknowledge both the likelihood of recession and the probability that future rate hikes will be smaller. At this point, their whistling past the graveyard simply isn’t fooling anyone.”