Bank of Canada to Eye Early 2027 Rate Hikes to Ensure Momentum Has Staying Power
Dow Jones
Aug 13
1607 ET - National Bank of Canada's economists stick to their forecast for Bank of Canada rate hikes starting in 1Q of 2027, despite a strong pickup in job growth in the past 3 months. The firm says job growth of roughly 180,000 in the May-to-July period is consistent with other economic indicators signaling a rebound in growth. Still, "we think the BOC will need more time to become convinced that the improvement has staying power," the economists say. They note the minutes covering the July 15 decision to hold steady suggested some officials worried the pickup in momentum might not have staying power. NBC adds the lags in data publication in Canada--with 3Q GDP out in late November--also argue against a rate hike this year.
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