Most market watchers predict the central bank will increase its key overnight rate by 50 basis points, though some suggest it could slow the steady climb of larger hikes with a 25-basis-point bump. Either way, the Bank is likely to end up settling at the same place soon, with the overnight rate around four or 4.25 per cent by early next year. Avery Shenfeld, chief economist of CIBC Capital Markets, predicts a 50-basis-point hike, but said the Bank’s messaging will be key. On the other hand, the residential real estate market has already been hit hard by rate hikes. “I think everyone agrees the rate-hike cycle in Canada is closer to the end than to the beginning, but the debate is really about how finely tuned the upcoming rate hikes should be,” Mendes said.

Source: The Star December 06, 2022 11:01 UTC