Most economists in a Wall Street Journal survey expect the BOC to raise rates on
Wednesday, the bank's first hike in over three years. Governor MACKLEM has
highlighted rising fuel costs that could push up non-energy goods prices, a key
driver of market expectations for tightening. The survey and analysts report
higher inflation expectations among firms and households, prompting a bias
toward earlier action. Despite US trade-policy uncertainty, Canada’s economy
remains relatively resilient with retail sales and exports beating forecasts. In
the WSJ poll of 15 economists, 11 forecast a 25bp hike to a 2.50% overnight rate
target and four expect no change; most still see at least one additional hike
later despite some soft patches in the economy.