Central Banks
Bank of Canada Slows Rate Hikes in Move Markets Hope Fed Follows
- Macklem boosted benchmark by half a point, less than forecast
- Powell still seen increasing by 75 basis points next week
This article is for subscribers only.
The Bank of Canada signaled it’s nearing the end of its interest-rate hiking campaign, potentially providing a model for counterparts elsewhere as recession risks mount.
The central bank unexpectedly slowed its pace of rate increases on Wednesday, amid concern Canada’s economy is already flirting with a recession. Governor Tiff Macklem boosted the benchmark overnight lending rate by 50 basis points, instead of the three-quarter move expected by markets and most economists.