video

Articles

Podcasts

Videos

Find a branch or ATM

Contact our Thought Leadership team—we value your insights!

Have questions or feedback?

Manage your meeting

Need to meet?

Explore the latest insights, reports, and timely topics affecting economic growth at home and around the world.

CIBC Thought Leadership

Connect with us:

Find more insights and analysis from the CIBC Economics team.

CIBC Economics

The Bank of Canada raised interest rates by 25-basis points to take their overnight rate to 2.5%.
The reason for that is that policymakers are more worried today that higher energy prices are going to translate into higher prices for other goods and services down the road.
The Bank of Canada&#8217;s new inflation forecasts within today&#8217;s monetary policy report suggests that inflation will accelerate further, but stay elevated all the way through 2027, even as energy prices come back down.
We believe that their current inflation forecasts may be a little bit too high, and we do think that inflation won&#8217;t accelerate quite as much as the Bank of Canada now fears.
That means that the central bank is likely to raise interest rates once more, perhaps in January of next year.
But after that, with inflation decelerating, as we expect, we think that the Bank of Canada can hold interest rates at that level, and that will help facilitate growth within the Canadian economy and to help bring the unemployment rates back down.

The Economic Brief

Drivers of Growth

Economic Growth

Economic Outlook

Economics

Fiscal Policy

Inflation

Interest Rates

Public Policy

The Bank of Canada raised its overnight rate over concerns about inflation. What comes next?

The Bank of Canada raised its overnight rate over concerns about inflation. What comes next?

The Bank of Canada raised its overnight rate over concerns about inflation. What comes next?

The Bank of Canada raised its overnight rate over concerns about inflation. What comes next?

CIBC Economics

Andrew Grantham

Senior Economist

CIBC