Bank of Canada expected to hike rates despite geopolitical risks

BNN: 'The Bank of Canada is still widely expected to begin hiking its key lending rate Wednesday despite intensifying geopolitical risks. Bloomberg data shows market bets continue to be in favour of a 25 basis point hike to bring the overnight rate to 0.50 per cent, but the implied odds of an increase have been scaled back in recent days amid Russia’s full-scale attack on Ukraine.

'“Geopolitical tensions have increased, but we still expect the Bank of Canada to hike rates [this] week with domestic economic conditions looking substantially stronger and inflation running above-target,” said Nathan Janzen, senior economist at RBC Economics, in a note to clients on Tuesday.'