When Will Rates Peak? | Page 2 | General financial discussion | Discussion forum

"the Governing Council decided to front-load the path to higher interest rates by raising the policy rate by 100 basis points today. "

They took out their bazooka.

COIN said

Yes, U.S. inflation is now 9.1%. Wonder if that was a factor in the BofC 100bp increase?  

I would think Bank made up their mind before seeing the US inflation. Obviously some conspiracy theory may suggest numbers are quick peeked within CB, btw Stat Can and BoC, etc. Something we can never verify.

I think this 100bps hike is also a function of Tiff Macklem's way of establishing his legacy and show Bay St he IS the man...
Either way 100 follow by 50, vs 75 x2 ends up being the same end rate. But going 100 becomes an eye opener and get people talking about the bank AND him.

savemoresaveoften said I think this 100bps hike is also a function of Tiff Macklem's way of establishing his legacy and show Bay St he IS the man...
Either way 100 follow by 50, vs 75 x2 ends up being the same end rate. But going 100 becomes an eye opener and get people talking about the bank AND him.  

As usual, BoC gets it bassackwards. A 100-pt opener would have had the best effect and then tapering with smaller increases to signal a softer landing.