# ‘The stars are aligned’ for at least one more BoC rate hike: Economists and markets react to surprisingly strong GDP data - The Globe and Mail

> Money markets and economists increasingly expect at least one more Bank of Canada rate hike this year after first-quarter GDP grew 3.1% annualized versus 2.5% expected. The Bank of Canada has raised its key rate to 4.5% and had paused since January. Some economists see a hike as soon as the June 7 meeting.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/36183-the-stars-are-aligned-for-at-least-one-more-boc-rate-hike-economists-and
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Expectations of tighter Canadian monetary policy tend to strengthen the loonie against the US dollar. The effect on feed commodity prices is limited, though a firmer currency can marginally weigh on Canadian export competitiveness.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-another-boc-rate-hike-could-come-soon-how-economists-are-reacting-to/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.