1122 ET - An additional Canadian rate increase is now priced into the forward rate market in anticipation of the July central bank meeting, though current projections suggest an roughly 5.1% policy rate by December, an only minor increase after the Bank of Canada raised they key rate a quarter point to 4.75% Wednesday, notes Picton Mahoney Asset Management portfolio manager Geoff Phipps. He points out that downside risks to the economy persist, predominantly due to the vulnerability of household debt to rapid borrowing rate increases. "It is crucial to consider these risks thoroughly, as the dangers of hiking rates amidst a potential economic slowdown can surface quickly." (robb.stewart@wsj.com; @RobbMStewart)

Source: Wall Street Journal June 07, 2023 16:56 UTC