10/26/2022
This morning we witnessed yet another rate hike from the Bank of Canada, but the end may be near.
Expectedly, the overnight rate increased by 50 basis points in order to curb inflation. This is the sixth time this year that the Bank has tightened money supply to quell inflation, so far with limited results.
Although no crystal ball exists, we are likely nearing the end of the rate increase cycle, and we may see rates flatten in 2023. Should a recession ensue in the near-term, this would apply downward pressure on rates late next year and beyond.
For the full Bank of Canada Summary, along with our suggestions for Variable Rate holders, visit our website at https://hubs.ly/Q01qPqKR0