Top Bay Streeter sees giant Bank of Canada rake hikes ahead
BNN: 'The Bank of Canada went almost 20 years without hiking its benchmark interest rate by half a point. Now, in the span of less than two months, it's gone back-to-back with moves of that magnitude as it attempts to wrestle down inflation. But as far as a top fixed income expert is concerned, Canadians should brace themselves for even more aggressive monetary tightening in the months ahead.
'"What was not expected (Wednesday) was the hawkishness of the Bank of Canada. Which, actually, you know, it's a prelude to a 75-basis-point hike in our minds," said Earl Davis, BMO Global Asset Management's head of fixed income and money markets, in an interview. There are 100 basis points in a percentage point. "Seventy-five basis points next move, and possibly another 75, so they'll get rates up to 2.75 to three per cent by September."'