BMO becomes the final big Canadian bank to forecast BOC rate hike next week
BMO throws in the towel
All six of Canada major banks now believe the BOC will hike rates next week.
Many changed their calls after Friday's strong jobs report with BMO as the long holdout. After today's Business Outlook Survey, BMO chief economist Doug Porter now says a hike is coming.
"It appears highly likely that a data-dependent Bank will set aside its recent caution, and hike rates 25 bps at next week's meeting," Porter wrote today..
Separately, TD economics said the report increases its confidence that a hike is coming.
"When the wage outlook and its underlying drivers are taken together with the tick-up in investment intentions and the healthy outlook for hiring (even more impressive in light of the recent string of strong jobs numbers), the picture that emerges is one of economic strength. Today's report should thus provide Bank of Canada Governor Stephen Poloz with further confidence that emergency level interest rates are no longer needed, with the next policy interest rate increase to come next week," the note said.
On Friday I spoke to BNN about the outlook for rates and the Bank of Canada decision.