Real Estate Blog - canada interest rates

The Bank Of Canada Is Unlikely To Hike Rates Until March, Despite Soaring Yields: BMO

Posted by Teri-Lynn Jones on January 5th, 2022

Canadian bond yields are soaring, but the central bank isn’t expected to raise rates. At least not yet, according to an analysis from BMO Capital Markets. Government of Canada (GoC) bond yields showed a multi-year high for annual growth in 2021. This means rising market expectations of the overnight rate climbing in the near-term. Despite soaring yields, BMO doesn’t see the Bank of Canada (BoC) raising rates in January. Public health measures make that unlikely, but they still do see an early hike.

Canadian Bond Yields Are Rising At A Multi-Year Record Pace

The GoC 5-year bond climbed at one of the fastest rates ever last year. The yield ended 2021 at 1.264%, up 86.5 basis points (bps) from a year before. It was the biggest…

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