# Bank of Canada may hike rates as economy is stronger than expected

> Stronger-than-expected first-quarter Canadian GDP of 3.1% annualized raised expectations of another Bank of Canada hike. Markets priced about a 40% chance of a hike at the June 7 meeting and a 25-basis-point increase by September. Desjardins and others said further tightening was gaining traction.

- Date: 2023-05-31 · published 2023-05-31T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/36188-bank-of-canada-may-hike-rates-as-economy-is-stronger-than-expected
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Expectations of tighter Canadian policy support the loonie against the US dollar. The effect on feed commodity prices is minor, mainly altering Canadian export pricing in US dollar terms.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- financialpost.com: https://financialpost.com/economy/bank-of-canada-may-hike-rates-economy-stronger-than-expected/

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