BOC: Policy rate should hit 2% by the end of 2022 – Scotiabank

Dhwani Mehta FXStreet

Analysts at Scotiabank offer their take on the Bank of Canada’s (BOC) monetary policy, predicting the policy rate to hit 2% by the end of 2022.

Key quotes

“Despite a clear, but temporary, negative impact of Omicron on economic activity, it is clear that inflationary pressures are larger than earlier assessed and require a more robust monetary policy response.”

“In Canada, we expect a 25bps move on January 26 followed by 150bps of additional tightening for the remainder of the year, for a total increase of 175bps this year.”

The policy rate should hit 2% by the end of 2022. Despite that path, the real policy rate would remain negative through the year.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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