Bank of Canada survey higlights the expected end of rate hikes

<p>The Bank of Canada today released its Q2 survey of market participants and this was the most-notable question. It indicated that the BOC's latest rate hike to 5% will be the last and that the 24% chance of a hike priced in for September will dwindle.</p><p>The gradual return to 2.50% should also be relief for home owners on variable rate mortgages and set the stage for a mid-decade improvement in the economy. Comparatively, Canada is also looking good with consensus GDP forecasts (for whatever they're worth) for 2024 currently the highest for Canada among major developed economies.</p><p>What's interesting is that this same survey only has Canadian growth pegged at 0.7% this year and 1.2% next year — hardly blowing the doors off. But with the latest PMIs and ongoing deindustrialization in Germany, that's comparatively good.</p><p>The full survey is <a href="https://www.bankofcanada.ca/2023/07/market-participants-survey-second-quarter-of-2023/" target="_blank" rel="nofollow">here</a>.</p>

This article was written by Adam Button at www.forexlive.com.