Bank of Canada Preview: Omicron Throws Rate Hike Forecasts into Question
While markets are pricing in the first Bank of Canada rate hike by March, some economists say the uncertainty of the new Omicron Covid-19 variant could put that timing into question.
“Omicron threatens to delay some [central bank rate hikes], but market pricing is still generally ahead of our expectations for tightening next year,” noted RBC senior economist Josh Nye.
Bank of Canada Deputy Governor Lawrence Schembri said as much in a speech last month: “There’s a lot of uncertainty about the timing of the closing of the output gap, so one should be careful not to assume it’s necessarily going to be the second quarter.”
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Original Article Source Credits: Canadian Mortgage Trends, https://www.canadianmortgagetrends.com
Article Written By: Steve Huebl
Original Article Posted on: December 7, 2021
Link to Original Article: https://www.canadianmortgagetrends.com/2021/12/bank-of-canada-preview-omicron-throws-rate-hike-forecasts-into-question