- Analytics
- News and Tools
- Market News
- BOC Preview: To act “more forcefully“ and hike the policy rate by 75bp – Goldman Sachs
BOC Preview: To act “more forcefully“ and hike the policy rate by 75bp – Goldman Sachs
Analysts at Goldman Sachs offer a sneak peek at what to expect from Wednesday’s Bank of Canada’s (BOC) interest rate decision due at 1400 GMT.
Key quotes
"We expect the BoC to act "more forcefully" and hike the policy rate by 75bp this week to 2.25%. Beyond this week, we expect another 75bp hike in September, 50bp hikes in October and December, and a 4.25% terminal rate reached in Q1 2023.”
“The main drivers of our hawkish BoC call are that we expect headline CPI inflation to remain above 7% this year and for the BoC to respond aggressively to any signs of entrenched inflation.”
"Risks to our hawkish terminal rate forecast are to the downside. A more significant US growth slowdown or a crash in the housing market would likely mean that the BoC hikes less in December and January than we expect."
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
