Reuters highlighted the Bank of Canada’s (BOC) latest survey to raise the likelihood of a big rate hike in its analysis section released on Monday evening.
A Bank of Canada survey showed on Monday that “consumer expectations for inflation are soaring in Canada, reaching new highs in the near term and rising ‘significantly’ in the longer term, reinforcing calls for a very rare 75 basis point rate hike”. update.
Main conclusions
Consumer inflation expectations rose, along with concerns about food, gasoline and rent prices, the central bank said in its survey of second-quarter consumer expectations.
In general, people see inflation as more prevalent now.
In a separate survey, the bank found that businesses expect high inflation for longer, with companies monitoring wage increases recorded in the survey over the next 12 months and many planning to pass on the increased fees. on customers.
Both surveys reinforce calls for a 75 basis point rate hike in the next Bank of Canada decision on July 13. It would be the biggest increase since August 1998, when the bank raised interest rates by 100 basis points to defend the currency.
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