Beware of Anticipating Too Many Interest Rate Hikes

Over the last few months, the wind has shifted in the financial markets, and they’re now quicker to anticipate more key rate increases to combat rising inflation. However, it is important to remember that raising interest rates is not a miracle cure, especially in the current context. There are several arguments for moderate monetary firming in 2022. For now, our main scenario calls for three 25‑basis‑point key interest rate increases in the United States and Canada.