Impending Interest Rate Hikes

The Bank of Canada announced today that interest rates will have to rise “in the near term”. The statement is in contrast to earlier statements that rates would be rising only in the long term. A need to curb monetary expansion has fuelled the indications that rates will be raised at the next decision date, September 7th. In reaction to the statements, the dollar rose slightly and bonds fell across the curve. A Monetary Policy Report Update will be released this Thursday by the Bank to clarify the reasons for its recent rate decisions.

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