Canadian market participants see rates staying at 5% in 2023 -BoC survey

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The Bank of Canada (BoC) will not raise rates again and will start cutting a little later than previously anticipated, according to a survey of market participants released by the central bank on Monday.

The BoC's second-quarter survey, conducted from June 8 to 19, showed a median of the participants expect the bank to hold interest rates at a 22-year high of 5.00% until the end of 2023, before starting to cut rates in March.

A median of 25 participants now also predict a 0.7% gross domestic product growth at the end of 2023, instead of a 0.1% contraction forecast in the last survey. The bank has hiked rates 10 times since March 2022 and said it could raise rates further because of the risk of inflation stalling above its 2% target.

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