KPMG Canada chief economist Ali Jaffery said he is not inclined to support a BOC rate hike on Wednesday but would not call such a move a policy mistake. He noted that despite job losses and softer market sentiment, the central bank appears intent on pre-empting inflationary pressure from persistently high oil prices. Jaffery said a 25bp hike followed by another would keep the policy rate within the BOC’s estimated neutral range. He added a hike could prolong the economy's weakness, though offici

KPMG Canada chief economist Ali Jaffery said he is not inclined to support a BOC rate hike on Wednesday but would not call such a move a policy mistake. He noted that despite job losses and softer market sentiment, the central bank appears intent on pre-empting inflationary pressure from persistently high oil prices. Jaffery said a 25bp hike followed by another would keep the policy rate within the BOC’s estimated neutral range. He added a hike could prolong the economy's weakness, though officials may judge there are sufficient positive factors to sustain growth.