Are interest rate hikes finally coming to an end? The Bank of Canada’s latest interest rate hike of half a percentage point wasn’t unexpected, but what it said about potential future increases was surprising.   

Scotiabank’s Chief Economist Jean-François Perrault is back to discuss how the central bank is signalling a pause on future hikes, when he expects interest rates to start going down, and his latest research on what factors in Canada have further contributed to the global factors driving inflation.  

Read Scotiabank Economics’ research report on Canadian factors impacting inflation here. 

Key moments this episode: 

00:55 — How the Bank of Canada explains the latest hike 

1:46 — Why the language they used (or didn’t use) indicates rates may stop rising 

2:22 — Why the tone of this recent announcement seems more optimistic 

3:08 — Why sometimes “good news” can actually be a pessimistic outcome for growth 

3:50 — How does a potential recession fit into all this? 

5:28 — Will interest rates start to come down in 2023? 

6:18 — What is driving inflation in Canada and why COVID support programs may have played a role