Will the Bank of Canada raise rates next Wednesday?

Big 6 and Reuters Unanimously Predict the Bank Rate to remain unchanged

With the Bank of Canada due to announce it’s interest rate decision on May 30, we take a look at what leading economists and the big Canadian banks are predicting.

All 6 of the major Canadian banks are forecasting that the bank rate will remain the same after the announcement next Wednesday. In a poll by Reuters, 26 out of 29 economists agreed with these predictions. They cite general uncertainty due to dicey NAFTA trade negotiations with a highly unpredictable U.S. President and his insistence on a “good deal” for Americans, and increasing concerns over Canadian consumer debt and a housing market on a knife’s edge.

Before increasing rates further, the Bank of Canada wants to see that growth has once again gained real momentum. Though expert opinion suggests rates will remain unchanged next week, they do suggest that rises should be expected in coming months and over the next year.