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JPMorgan JMP-N and Goldman Sachs GS-N said on Wednesday they now expect the Bank of Canada (BoC) to deliver one last 25-basis point rate hike in October and lifted their terminal rate forecast to 5.25 per cent.

The revised forecast came after the BoC hiked its key overnight rate by a quarter of a percentage point on Wednesday to a 22-year high of 5 per cent and said it could raise rates further due to the risk of inflation stalling above its 2 per cent target.

Both Wall Street banks had earlier expected the BoC to end the cycle with a terminal rate of 5 per cent.

Goldman Sachs, however, warned that the final rate hike “could be pulled forward to September if upcoming activity and inflation data surprise to the upside.”

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 23/05/24 6:40pm EDT.

SymbolName% changeLast
JPM-N
JP Morgan Chase & Company
-0.7%196.92
GS-N
Goldman Sachs Group
-0.91%458.15

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