Markets raise bets on Bank of Canada hikes as oil fears mount

Bloomberg: Traders in overnight interest rate swaps are betting Governor Tiff Macklem and his council raise borrowing costs by 75 basis points in 2026, starting with a quarter-percentage point hike in July, as of 2:30 p.m. Ottawa time on Friday.

It’s a major shift in pricing compared to Wednesday, when the central bank held its benchmark interest rate steady at 2.25%, and markets had seen just 25 basis points of tightening this year…

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