The Federal Reserve raising its key interest rate by three-quarters of a percentage point—its largest hike since 1994—increases the odds of the Bank of Canada following suit next month, economists say.
The U.S. bank authority announced the Wednesday move will shift the country’s benchmark rate to a range between 1.5 percent and 1.75 percent as it tries to tame soaring inflation.
While the Bank of Canada recently upped its interest rate by a half point two times in recent months, taking it to 1.5 percent in June, governor Tiff Macklem has hinted he is prepared to act “more forcefully.”
Josh Nye, a senior economist with RBC Economics, believes Macklem is now even more likely to mirror the Fed….