Bank of Canada seen hiking as inflation expectations rise

· Economy · Canada

Bank of Canada surveys showed inflation expectations moving higher and more evidence that firms plan to pass on higher input costs to customers, leading more economists and traders to expect a rate hike next week.

Why it matters：A Canadian hike would show central banks still fighting inflation even as growth slows, with implications for borrowing costs globally.

Key points

  • Bank of Canada surveys showed rising inflation expectations
  • Firms plan to pass on higher input costs
  • More economists and traders expect a hike next week

Sources (original reporting)

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