NEWS

The Bank of Canada will be making their next Interest Rate Announcement the morning of September 7, 2022 and according to a recent report from CIBC Economics, they expect the country’s central bank to deliver a 75 basis-point hike that yields an Overnight Target Rate of 3.25% and then hold that rate for the remainder of the year.

They also anticipate the 5-year bond yielding an average rate of 2.45% in 2022 and 2.3% in 2023 which will generate close to $19 billion of additional debt payments in 2022. CIBC Economics does not see any further rate hikes in 2023 but also does not see an easing of rates either through 2024.

Other Canadian economists have agreed with the CIBC Economics vision but others have not and they predict further rates hikes could continue into next year with the Overnight Target Rate reaching 3.75%.

Sources: CIBC Economics, Financial Post, Canadian Mortgage Trends