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The Bank of Canada has raised its benchmark interest rate by 0.5 percentage points, taking the bank’s policy rate to 3.75 per cent.BLAIR GABLE/Reuters

The latest on the Bank of Canada's rate decision

The Bank of Canada has raised its benchmark interest rate by by 0.5 percentage points, increasing Canadian borrowing costs for the sixth consecutive time this year while warning that economic growth will “stall” in the coming quarters.

This moves the policy rate to 3.75 per cent for the first time since early 2008. Financial markets had been anticipating a larger 0.75 percentage point rate hike. The central bank said that interest rates will likely need to rise further to get prices under control.

The bank also cut its forecast for Canadian economic growth. It now expects 0.9 per cent annual GDP growth next year, down from its previous estimate of 1.8 per cent. While it avoided using the word “recession” it said that “a couple quarters with growth slightly below zero is just as likely as a couple of quarters with small positive growth.”

Find live updates below.

4 p.m.

What’s next?

The next Bank of Canada rate decision is on Dec. 7. Governor Tiff Macklem was clear that Canadians should expect another rate hike that month, although it could be a smaller 25-basis-point move. The following rate decision will be on Jan. 25

The U.S. Federal Reserve has a rate announcement on Nov. 2. Analysts and financial markets widely expect the Fed to deliver another 75-basis-point increase. This decision will be crucial. The Fed sets the tone for global financial markets. Any sign of a pivot to smaller or slower rate hikes could boost stock markets, while signs of ongoing hawkishness could send them spiraling downwards. If the Fed goes big, it could also put further downward pressure on the Canadian dollar, particularly after today’s smaller-than-expected move by the BoC.

Statistics Canada will publish October inflation data on Nov. 11. Several key pieces of data will be published in the next few days, including data on payroll employment, earnings and job vacancies (Oct. 27), GDP by industry (Oct. 28), and the labour force survey (Nov. 4).

– Mark Rendell

3:30 p.m.

Banks adjust their prime lending rates

RBC and TD increased their prime lending rate to 5.95 per cent from 5.45 per cent, and other lenders are expected to follow suit.

This will raise the amount of interest variable-rate mortgage holders pay on their loans.

It will also push borrowers closer to their trigger rate, or the level at which their regular monthly loan payments will not cover the interest.

The trigger rate is different for every borrower and is based on the size of their loan, the amount of their monthly payment, the interest rate of the mortgage and length of the amortization period.

Rachelle Younglai

2 p.m.

Interest rates will keep rising, but central bank is nearing a pause

Here are five takeaways from today’s Bank of Canada’s press conference with Governor Tiff Macklem and senior deputy governor Carolyn Rogers.

1. BoC shifts to a more balanced message

The Bank of Canada is in a delicate spot, governor Tiff Macklem said. Inflation remains stubbornly high, but the Canadian economy is starting to slow. “We are trying to balance the risks of under- and over-tightening.”

This marks a shift in BoC communications. Heading into the rate decision, Mr. Macklem had maintained a hawkish tone, warning of the risks of high inflation and an overheating economy.

He continued to say on Wednesday that inflation remains far too high but also said the bank is wary of raising borrowing costs more than necessary, which “could slow the economy more than needed.”

Today’s 0.5-percentage-point rate increase is still a larger-than-usual move. But Mr. Macklem’s shift in tone sets the stage for a bigger pivot in the months ahead.

2. Interest rates will keep rising, though increases may be smaller

Mr. Macklem was clear that interest rates need to rise more, although he didn’t offer much guidance as to the pace or size of future rate hikes.

He did say that the bank, which has pushed the policy rate up by 3.5 percentage points since March, is nearing the end of its rate-hike cycle. Analysts expect one or two more moves before pausing.

“This tightening phase will come to a close. We’re getting closer to that point, but we’re not there yet,” Mr. Macklem said.

3. BoC believes the economy needs to slow to restore price stability

Despite lower growth forecasts, Mr. Macklem and his team still think the Canadian economy is overheating. “Households and businesses want to buy more goods and services than the economy can produce, and this is driving prices higher,” he said.

Getting inflation under control will require a period of slower growth. The bank’s updated economic forecasts reflect that. It now expects almost no growth in the coming quarters, and only 0.9 per cent GDP growth for 2023.

Mr. Macklem avoided using the term recession, but he didn’t mince words: “Two or three quarters of slightly negative growth is just as likely as two or three quarters of slightly positive growth. That’s not a severe contraction. But it is a significant slowing of the economy,” he said.

The bank expects economic growth to pick up in the second half of next year.

4. Central bank independence is key in tough times

The bank has come under increased political attack during the past year. Conservative Party Leader Pierre Poilievre has promised to fire Mr. Macklem if the Conservatives form government. NDP Leader Jagmeet Singh said this week that “there’s absolutely no merit” to its approach to fighting inflation.

When asked about the criticism, Mr. Macklem said, “We need to do what we have to do … Inflation is not going to fade away by itself.”

“These are difficult decisions,” he added. “I will say that the independence of the central bank becomes more important when the decisions are difficult.”

5. Inflation outlook is mixed, although there are positive signs

Inflation was running at an annual rate of 6.9 per cent in September, down from 8.1 per cent in June, but still more than three times the bank’s 2-per-cent target.

“Our preferred core [inflation] measures have stopped rising in the last couple of months, but they have yet to show clear evidence that underlying inflation is coming down,” Mr. Macklem said.

But there are some hopeful signs. “Businesses have said they expect the rate of price increases for the goods and services they sell will come down. And more timely three-month rates of core inflation have declined, although they are still averaging about 4 per cent. We will need to see these three-month rates come down further, and those declines be sustained.”

There are still plenty of upside risks to inflation. Mr. Macklem said that global factors, such as a spike in oil prices or more supply chain disruptions tied to the war in Ukraine, could push up inflation. Likewise, service-sector inflation in Canada could prove “stickier,” he said.

– Mark Rendell

1:05 p.m.

Young people priced out of houses should be loving the rise in interest rates

Every increase in the Bank of Canada’s benchmark rate brings sunshine into the life of the aspiring first-time home buyer.

Not so much for young owners. They’re getting snowed under by rising mortgage costs. But if you have hopes of someday owning, or if you’re keen to set yourself up for never owning, then the rising rate trend is your best friend.

The first step for exploiting rising rates? Keep all your savings in a high-rate account at an alternative bank rather than one of the big banks. Expect rates of 2.5 per cent to 3.5 per cent in an account with no fees and mobile apps that make it simple to shuttle cash between savings and a chequing account elsewhere.

Read the full column on how today’s Bank of Canada rate hike will affect young homebuyers.

– Rob Carrick

12:30 p.m.

How will BoC’s rate hike affect mortgages?

An aerial view of housing is shown in Calgary.Jonathan Hayward/The Canadian Press

The risks of variable-rate mortgages have never been exposed like in 2022. These mortgages built a huge fanbase of homeowners who benefited for the better part of 30 years from falling interest rates. But in 2022, the Bank of Canada benchmark rate, which guides the price of variable-rate mortgages, has now reached 3.75 per cent, compared to 0.25 per cent at the beginning of the year.

People with fixed-rate mortgages will get acquainted with the rise in borrowing costs when they renew their mortgage. But with a variable-rate mortgage, you may have your payments adjusted every time rates go up. The alternative is that your payments stay level, but less of the amount goes to repayment of principal and more toward interest. Eventually, even these variable-rate mortgages get reset with higher payments.

Is the day of the variable-rate mortgage done, then? Not if you believe the rate increases we’ve seen will finally slow both inflation and economic growth in the year ahead. Rates could head lower then, bringing the cost of variable-rate mortgages along for the ride.

We may well see one or two more rate hikes from the Bank of Canada in the next few months, so there’s some near-term risk that your payments edge higher. But longer term, variable-rate are a path to lower mortgage costs.

Read our explainer to understand how the Bank of Canada’s interest rate hike affect variable-rate mortgages.

– Rob Carrick

12:05 p.m.

Bank of Canada: Homeowners are dealing with a once-in-a-lifetime borrowing period

The Bank of Canada has acknowledged that homeowners are dealing with a once-in-a-lifetime borrowing period.

In its quarterly monetary policy report, the central bank said homeowners who are renewing an existing mortgage are “facing a larger increase than has been experienced during any tightening cycle over the past 30 years.”

The report provides an example of a homeowner who signed a five-year fixed-rate mortgage in October, 2017. Today, that homeowner would face a mortgage rate that is “1.5 to 2 percentage points higher at renewal.”

The central bank report notes that higher mortgage rates have led to significant declines in housing activity. During the recent July to September period, there were $72-billion worth of real estate resales across the country, according to the Canadian Real Estate Association. This compares with $121.7-billion in the first three months of this year. (The numbers were adjusted for seasonality, meaning seasonal and calendar influences were eliminated.)

Since the bank embarked on its rate hiking plan, the home price index across the country has dropped 9 per cent. (The HPI adjusts for higher priced homes in its model.) However, the HPI is still up 3.7 per cent when compared to September, 2021, according to CREA data. The monetary policy report says home prices are “projected to continue to decline, particularly in those markets that saw larger increases during the pandemic.”

Those markets include large swaths of southern Ontario such as the Toronto suburbs and less populated cities like Cambridge.

– Rachelle Younglai

11:55 a.m.

The impact of Bank of Canada’s rate hike on TSX, bond markets

Fixed income and equity markets continue to adjust to the Bank of Canada’s 50-basis-point rate hike as of 11:30 a.m. ET.

Two-year bond yields, after climbing slightly from the post-announcement lows, have renewed their decline and are now trading at 3.78 per cent.

U.S. bond yields, taking a rare cue from Canada, continue to trade lower as the two-year yield is three basis points lower at 4.41.

The TSX rallied hard after the Bank of Canada hike and is now 1.2 per cent higher. The cyclical industrials sector is a main beneficiary, climbing 1.6 per cent. Surprisingly, to me at least, the interest rate-sensitive utilities and real estate sectors are the laggards for the day.

Read the latest midday market update as the TSX rallies early in the day.

– Scott Barlow

11:35 a.m.

Today’s BoC decision suggests ‘we’re not done with rate increases’

My first thought on reading the Bank of Canada rate announcement was that the rate move itself, and the statement accompanying it, say different things.

If you simply read the statement, you would assume that the bank was still going full speed on rate hikes.

If you simply look at the 0.5-percentage-point rate hike – the smallest since spring – you would think that the bank is easing off the pedal.

Taken together, it suggests that we’re not done with rate increases, but that, perhaps, the bank’s “front loading” – what it has called the large, rapid-fire hikes of the past six months – may be nearing an end.

Perhaps we are approaching a return to the usual 0.25-percentage-point moves in the future. Though, to be clear, that bank hasn’t come close to saying that in so many words.

– David Parkinson

11:25 a.m.

How will Bank of Canada’s rate hike affect borrowers?

So here’s the drill on how this latest Bank of Canada rate increase flows down to borrowers.

Within hours, each of the big banks will announce an increase in their prime lending rate that matches the rise in the overnight rate of 0.5 percentage points. The prime is used to set costs for variable-rate mortgages, home equity lines of credit, unsecured credit lines, as well as floating-rate student and consumer loans. Rates on all these kinds of debt will be half a percentage point higher in a day or so.

Don’t be shocked, but the process by which Bank of Canada rate increases trickle down to savers is slower and more uncertain. We may see some alternative banks pushing up returns from their high-rate savings accounts in the days ahead, but it’s unlikely rates would rise by 0.5 percentage points. More likely, a fraction of that amount.

Rates on guaranteed investment certificates do not follow the Bank of Canada’s overnight rate, but they have nevertheless been rising lately. While borrowers are getting squeezed these days, savers and conservative investors are seeing returns that have not available in decades.

– Rob Carrick

11:10 a.m.

Bank of Canada’s monetary policy report on ‘recession’ projections

Remarkably, the Bank of Canada’s Monetary Policy Report only uses the word “recession” once. But the risk of a recession, both globally and in Canada, is all over the bank’s economic forecasts.

There is a meaningful downgrade of global growth in 2023, to 1.6 per cent from 2 per cent. The bank forecasts U.S. growth at a puny 0.2 per cent for the year as a whole, while saying it expects “no growth in the U.S, economy for most of next year.” It projects that the Euro area economy will suffer a small contraction for 2023.

For Canada, meanwhile, the bank is looking at 0.9 per cent growth in 2023 (half of what it forecast in July). And again, it says it expects the economy to “stall through the end of this year and the first half of next year.”

If we accept the often used (overly simplistic) definition of a recession as two consecutive quarters of contraction, then it looks like a certainty in Europe and a high likelihood in the United States. And the numbers imply that it would take almost nothing to tip Canada into recession as well.

– David Parkinson

10:55 a.m.

Economists weigh in on the BoC’s rate hike

Here is how Bay Street analysts reacted in notes sent to their clients:

Royce Mendes, head of macro strategy at Desjardins Securities: “The fact that core inflation hasn’t slowed, inflation expectations remain elevated and demand is still outrunning supply, the Bank could have easily justified a larger rate hike. That said, the risk of such an aggressive move apparently outweighed the reward. As we’ve long said, the Canadian central bank needed to pivot before its U.S. counterpart as a result of the interest-rate sensitivity of the Canadian economy.”

Andrew Grantham, senior economist at CIBC Capital Markets: “The statement and downgraded growth forecasts within the [Monetary Policy Report] hint at an economy that is losing momentum maybe a little quicker than previously anticipated. Housing is seen to have retreated ‘sharply’ but there was also reference to consumer and business spending softening, as well as weaker international demand … Even with the weaker growth profile, the Bank stated that its preferred measures of inflation are not yet showing meaningful evidence of easing, and as such the statement still suggested that interest rates ‘will need to rise further.’”

Stephen Brown, senior Canada economist at Capital Economics: “After spending the last two months telling us that the only thing that matters for the policy outlook is core inflation, inflation expectations and the tightness of the labour market, the Bank dropped down to a 50 [basis point] hike today – despite elevated core inflation, inflation expectations and the tightness of the labour market.”

Read how more economists and market strategists are reacting to the move.

– Matt Lundy

10:45 a.m.

How Bank of Canada’s rate hike is affecting the bond market

The Canadian loonie began its decline just ahead of 10:00 a.m. ET, falling a penny to US$0.73.Mark Blinch/Reuters

The Bank of Canada’s smaller-than-expected, 50-basis-point hike caused ripples in bond markets, not only in Canada but around the world. (A basis point is one hundredth of a percentage point.)

Bonds had adjusted somewhat for the possibility of a lower hike ahead of the announcement, with the two-year yield having dropped from 4.3 per cent on October 21 to the 4.1 level as today’s trading began.

The process continued in the wake of the news. The two-year bond yield dropped sharply to 3.91 per cent immediately before recovering slightly to 3.95.

The U.S. bond market, surprisingly, was also affected. The U.S. two-year yield fell from 4.44 per cent to 4.38 per cent after the Bank of Canada announcement. U.S. bond markets are interpreting today’s surprise as a potential sign that the Federal Reserve will follow the Bank of Canada and slow rate increases.

The loonie began its decline just ahead of 10:00 a.m. ET, falling a penny to US$0.73 where it remains as of 10:15 a.m.

Moving forward, it is likely that the Bank of Canada will need to see more concrete signs that higher borrowing costs are slowing the economy and inflation pressure before rate increases stop completely for the cycle.

Some data is slowing – the most recent reading of the S&P Manufacturing PMI indicated a contraction in activity – but most indicators remain inflationary. For example, retail sales for August grew at a 7- per-cent pace year over year.

– Scott Barlow

10:25 a.m.

BoC’s latest rate hike will be ‘negative for all borrowers’

Sherry Cooper, chief economist with Dominion Lending Centres, sums up the latest interest rate hike this way: “It will be negative for all borrowers.”

If you have a variable-rate mortgage with static payments, a higher share of your mortgage payment will go toward interest and a smaller percentage will go toward the principal. If you have a variable-rate mortgage where the payment adjusts when interest rates change, you will immediately face a higher monthly mortgage payment.

If you have a fixed-rate mortgage, where the interest rate remains the same for the length of the mortgage contract, your monthly payments will remain the same for the duration of the loan. When it is time to renew your loan, the interest rate on the mortgage may be higher and you may pay more to borrow.

Before today’s rate increase, the average five-year fixed mortgage had an interest rate of 5.45 per cent, according to rate comparison web site Meanwhile, the average five-year variable mortgage had an interest rate of 4.94 per cent, said

For those who have a home equity line of credit, or HELOC, your interest payments will rise immediately. Some real estate experts are starting to report that borrowers are turning to HELOCs and alternative lenders to help cover the sharp rise in borrowing costs.

According to central bank data, more borrowers are withdrawing funds from their HELOCs. Withdrawal amounts increased 2 per cent during the first two quarters of this year.

– Rachelle Younglai

10 a.m.

Bank of Canada delivers 0.5-percentage-point rate hike

The Bank of Canada has raised its benchmark interest rate by 0.5 percentage points, increasing Canadian borrowing costs for the sixth consecutive time this year in an effort to get inflation under control.

This takes the bank’s policy rate to 3.75 per cent for the first time since the spring of 2008.

– Mark Rendell

9:25 a.m.

How can younger Canadians prepare for an economic downturn?

This morning’s expected interest rate increase is a move that also risks pushing Canada further towards a recession.

For many younger Canadians, this economic downturn is a first, and it’s only adding to an already challenging financial situation. So, how should Gen Z and millennials prepare financially? What will rising rates mean for the housing market? Is this a good time to invest? And, what are the best strategies for saving even with high inflation?

Later today, at 2 p.m. ET, join The Globe and Mail for a live Twitter Space with Menaka Raman-Wilms, host of the daily news podcast The Decibel. The Globe’s personal finance writers Rob Carrick and Erica Alini, as well as personal finance expert Melissa Leong, will answer all of your questions about housing, debt, savings and investing.

– Globe staff

8:45 a.m.

Rate hikes are starting to negatively impact Canada’s job market

Persistent interest rate hikes are starting to cause Canada to shed jobs, even as certain sectors of the economy continue to experience labour shortages, according to a new report that analyzes the effects of the Bank of Canada’s rate increases on workers.

Between May and September this year, the Canadian economy lost close to 100,000 jobs, almost all of them full-time. The only points in the past when equivalent numbers of jobs were lost over a four-month period were during recessions, said Jim Stanford, the report’s lead author and director of the Vancouver-based Centre for Future Work, a think tank.

“We saw these job loss signals during recessions in the early 1980s, during the 2008-09 financial crisis and more recently in the early stages of the COVID pandemic,” Dr. Stanford said. “This is obviously a sign that labour demand is shrinking or dramatically cooling off.”

The shift in the labour market is occurring in the midst of one of the Bank of Canada’s fastest rate-hike cycles on record, a calculated effort to cool inflation by raising the costs of borrowing for households and businesses.

Read the full story.

– Vanmala Subramaniam

8:10 a.m.

How the Bank of Canada ‘lock-up’ works

The Bank of Canada building is shown in Ottawa on Tuesday, July 12, 2022.Sean Kilpatrick/The Canadian Press

On days such as today, when the central bank is publishing both a rate decision and a Monetary Policy Report (it happens four times a year), reporters arrive at the Bank of Canada headquarters just down the street from the Parliament Buildings, as early as 7 a.m. ET for a “lock-up.” They receive advance copies of the rate announcement (typically just a few paragraphs long) and the MPR (about 30-40 pages). The quarterly report is the bank’s most substantial policy document, and includes the bank’s latest economic forecasts as well as a detailed discussion about the current economic climate, the bank’s expectations, and the key risks ahead.

Reporters aren’t allowed out of the room until the 10 a.m. ET release time, and their communications is cut off to the outside world. During the lock-up, Bank of Canada officials brief reporters on key elements of the MPR.

At 11 a.m. ET, Bank of Canada Governor Tiff Macklem and senior deputy governor Carolyn Rogers hold a news conference, which usually runs about 45 minutes. It will begin with a roughly 10-minute “opening statement,” read by the Governor, that provides additional context to the rate decision. The opening statement has evolved into a significant document in recent years, as the bank has used it to provide a public glimpse into the deliberations of the bank’s Governing Council (the Governor and his deputy governors) as they debated their key concerns and reached a decision. That is followed by questioning from the reporters both in the room and participating via conference call.

After the news conference, Mr. Macklem will conduct a pair of media interviews – one with a television outlet, one with a wire service – covering both official languages. Bank staff will also provide briefings to participants in key markets, similar to the morning briefing for reporters, to provide additional colour on the rate decision and MPR.

– David Parkinson

7:30 a.m.

Will this be the moment the Bank of Canada changes its tune?

The big question of the day isn’t whether the Bank of Canada will raise its policy interest rate again – it absolutely will. What’s less certain is by how much. Coming off increases of a full percentage point in July and 0.75 percentage point in September, there was a sense that the bank might be ready to slow the pace to 0.5 percentage point, perhaps in preparation to pause hikes for a while in the new year. But the bank’s talk has toughened leading up to this decision, while the inflation data have not made a convincing case for easing off the rate throttle. The markets are leaning toward another 0.75-percentage-point hike, although economists are more evenly split.

Along with the rate increase, I’ll be looking for any change of the bank’s language that might suggest it’s going to slow down or pause. I’ll pay close attention to even small, subtle rephrasings – the bank is typically very coy about its rate outlook.

After that, the big news will be the central bank’s new economic forecasts. Since the bank’s last quarterly update, in July, the global growth outlook has markedly deteriorated. Several Canadian private-sector economists now predict a Canadian recession next year. The Bank of Canada will certainly downgrade its growth projection – it’s hard not to, given the international economic climate – but how much will it shave off its 2023 forecast of 1.8 per cent? Will the bank actually start baking a contraction into its projections? Less than two weeks ago, Mr. Macklem was still talking about the possibility of a “soft landing” – a slowdown that doesn’t slip into a recession – although he allowed that the odds of such an outcome were shrinking. Is this the moment when the bank changes its tune?

With the bank’s focus squarely on the fight to bring down inflation, I’ll be looking for anything shedding light on how the bank thinks that is going. Because the bank observes a blackout on public communications for eight days leading up to the release of the decision and MPR, this will be its first chance to share its views on the September inflation report, which Statistics Canada published a week ago.

– David Parkinson

6:45 a.m.

Why is everyone talking about the Bank of Canada?

For the better part of 40 years, Canadians haven’t had to think much about the Bank of Canada. Over the past year, it’s become impossible to ignore.

Inflation has surged for the first time in decades, cutting into wages and eroding the purchasing power of the dollar. Monetary policy has become a hot political topic. Conservative Leader Pierre Poilievre has said he would fire Bank of Canada Governor Tiff Macklem, while New Democrat Leader Jagmeet Singh has begun publicly criticizing the bank’s aggressive rate hike path.

Since March, the central bank has increased borrowing costs five times – with another large rate hike expected Wednesday. That’s making it more expensive for households to get mortgages and for businesses to secure loans. The housing market is cratering, businesses and consumers are getting nervous and a growing number of economists are predicting a recession next year.

So why is the Bank of Canada raising interest rates? What’s happening with inflation? And what control over the central bank does the government have? Read our explainer.

– Mark Rendell

6:30 a.m.

Bank of Canada expected to deliver another large interest rate hike

The Bank of Canada is set to deliver its sixth consecutive rate hike this morning, continuing to ratchet up borrowing costs for Canadians in an effort to get inflation under control.

The announcement will be at 10 a.m. ET. As of Tuesday afternoon, financial markets were pricing in a 70-per-cent chance the bank will increase its benchmark policy rate by 0.75 percentage points. That would take the policy rate to 4 per cent for the first time since early 2008. Some analysts are expecting a smaller 0.5-percentage-point move.

Governor Tiff Macklem has been unambiguous in recent weeks that interest rates need to keep moving higher. Consumer price index inflation was 6.9 per cent in September, more than three times the Bank of Canada’s 2-per-cent target.

Headline inflation has slowed in recent months, thanks to falling gasoline prices. But an increasing number of goods and services are experiencing oversized price rises – a sign the bank’s aggressive rate hike campaign has not broken the momentum of inflation.

“We have yet to see a clear turning point in underlying inflation,” Mr. Macklem told reporters two weeks ago in his last public remarks before the rate decision. He said the economy is “overheating,” and it will take a period of lower economic growth and weaker labour markets to get inflation back to target.

The bank has increased its policy rate to 3.25 per cent from 0.25 per cent this year in one of the fastest rate-hike cycles on record. Many analysts believe the bank is nearing the end of its rate-hike campaign and will be watching for hints about future rate hikes.

The bank will also publish its quarterly Monetary Policy Report today, which will contain updated economic growth and inflation forecasts.

Analysts expect a downward revision for growth next year. They will be watching to see whether the bank continues to refer to a possible “soft landing” – a scenario where inflation drops without a spike in unemployment or sustained economic contraction. A growing number of private-sector economists – including Mr. Macklem’s predecessors Stephen Poloz and Mark Carney – are now predicting the Canadian economy will enter a recession next year.

Mr. Macklem and senior deputy governor Carolyn Rogers will give a press conference at 11 a.m. ET.

– Mark Rendell