Traders and economists are increasingly betting the Bank of Canada will raise rates next week, after its surveys showed rising inflation expectations. Bank of Montreal, Royal Bank of Canada and Desjardins Group have flipped to forecast a hike to 2.5% at the Oct. 28 meeting. Inflation accelerated to 3.1% year-on-year, below a Bloomberg survey forecast, yet overnight swaps priced the odds of a hike at 80%, up from about 30% a week earlier. Roughly half of firms plan to pass on some or all cost increases from energy prices and tariffs to customers. Still, a recent Bloomberg survey consensus points to a hold next week.
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Canadainterest ratesinflationUSDCAD
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Related tickers and likely impact
USD/CAD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 1.41108 |
| Change that session | -0.20% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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