The Bank of Canada (BoC) surprised the market with a rate hike last week, and BMO doesn’t think it was the last one. Canada’s economy is running so hot, the market now expects at least two more rate hikes. It’ll almost certainly lead to higher mortgage rates, which will throttle demand for housing at these prices. That’s not just a coincidence.
BOC rate is still trailing the Fed rate. Sucks to have an economy tied so tightly to the US that their fiscal policy is basically exporting inflation to us.