Thursday, October 16, 2025

Latest

Canada’s Big 6 Banks All Calling for 50 Basis-Point Hike as Inflation Goes Berserk

It’s official: inflation has gotten so out of control, that all six of Canada’s major banks are preparing for a colossal rate hike from the Bank of Canada come this week.

The National Bank of Canada, CIBC, and TD have now joined in on unanimous forecasts from the Bank of Nova Scotia, BMO, and RBC calling for central bank policy makers to hike borrowing costs to 1%. The Bank of Canada is expected to further raise interest rates during its next meeting on April 13, and if the banks’ expectations materialize, then Canada will undergo its first 50 basis-point increase since 2000.

The latest forecast from the Big Six follows the Bank of Canada’s quarterly Business Outlook Survey, which showed an alarming number of Canadian firms suffering from substantial capacity constraints and rising input costs, all of which will be passed down onto consumers in the form of higher output prices. At the same time, preliminary data from Statistics Canada showed economic output grew 0.8% in February following a 0.2% gain in the month prior, further enforcing the need for hawkish monetary policy action.

Source: Statistics Canada

“There’s enough there to give the Bank a pass at hiking 50 basis points, especially following the February flash GDP number,” TD Securities chief Canada strategist Andrew Kelvin told Bloomberg. “In this environment, we think it probably makes sense for them to take the path of least resistance.” 

However, Bank of Canada policy makers will have to tread carefully in the current macroeconomic environment, given that a sharp increase in borrowing costs could send many indebted Canadian households over the edge.


Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

OnlyFans Booming Despite Surging Inflation

Adult content website OnlyFans has something to gloat about: unlike its tech peer Netflix, the...

Wednesday, June 8, 2022, 03:41:00 PM

Canadian Inflation Blows Past 5%… Again

The month of February brings us to yet another set of record-breaking runaway prices, and...

Wednesday, March 16, 2022, 11:20:00 AM

Bubba Horwitz: The Real CPI Rate Is At 20% – The Daily Dive

On today’s Daily Dive, Cassandra is joined by one of our regular guests, Todd “Bubba”...

Tuesday, January 25, 2022, 01:30:00 PM

Bank of Canada Again Cuts Rates By 25 Basis Points

The Bank of Canada has cut its key interest rate by 25 basis points to...

Wednesday, September 4, 2024, 11:13:05 AM

Jerome Powell Raises Rates by Another 25 Basis Points

As was widely expected, Federal Reserve Chair Jerome Powell raised borrowing costs by another 25...

Wednesday, July 26, 2023, 02:06:11 PM