It’s clear we’re not done with interest rates continuing to rise and now, it’s a matter of how much and how often.
Although interest rates have been on the rise as central bankers hope to strangle inflationary pressures baked into our economy, the medicine is apparently not strong enough. So, they’re going to give us more and we can expect the next dose next week.
In fact, the biggest surprise would be no change in interest rates. That’s the certainty of another hike. Some chartered banks have already jumped the gun on raising they rates they charge their borrowers in advance of next week’s move.
Some are expecting a half point increase while ScotiaBank is saying the central bank has no choice but to tack on a three-quarter point increase with further hikes to follow.
It seems inflation simply won’t go away as we look deeper into the supply chain where the raw material index is still going up along with the industrial input index meaning manufacturers will likely have to raise their prices in the coming months.
