Central Banks

Bank of Canada Set for Fifth Outsized Rate Hike: Decision Guide

  • Markets pricing in another 75-basis-point move from Macklem
  • End of cycle may be near given debt levels and recession fears

Tiff Macklem and his officials have raised borrowing costs by three percentage points since March.

Photographer: Justin Tang/Bloomberg
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The Bank of Canada is set to deliver a fifth -- but possibly final -- outsized interest-rate hike this week amid signs its inflation-fighting efforts may be dragging the nation’s economy into a recession.

Markets are pricing in a 75 basis-point increase in the central bank’s overnight rate at its decision Wednesday at 10 a.m. in Ottawa. That would bring the benchmark to 4%, a level not seen since March 2008.