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5th Interest Rate Hike in 15 Months

As was widely anticipated, the Bank of Canada raised the overnight target rate yesterday by a quarter percent, increasing it from 1.5% to 1.75%. Most major backs quickly followed suit, hiking their prime rates to 3.85% up from 3.7%.

It appears that most increases are to follow.Avery Shenfeld, chief economist at CIBC Capital Markets explained in a message to clients shortly after the announcement that he felt the next increase could happen as early as the Bank of Canada's next meeting in December.

Others seems to think that the Bank of Canada might take a more measured approach and they have indeed been quoted several times saying they will make future decisions on a 'wait and see' basis depending on how the economy is performing.

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