Despite delivering a half-point interest rate hike at its final rate decision meeting of 2022, the Bank of Canada offered borrowers a glimmer of hope that this could be among its last.
On the heels of stronger-than-expected GDP growth in the third quarter and persistently high inflation, the Bank opted for the more aggressive of its two rate-hike options on Wednesday. Markets and economists had been nearly evenly divided in forecasting a 25- or 50-bps increase.
“Looking ahead, Governing Council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target,” read the Bank’s statement.
That was the first major deviation from previous statements, in which it regularly said rates “will need to rise further.”
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