Bank of Canada's surprise hike exposes global struggle to find endpoint for rates

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Bank of Canada's surprise hike exposes global struggle to find endpoint for rates
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Canada’s situation isn’t unique and other central banks, including the Fed, may also have to push interest rates higher. Read more.

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Policymakers led by governor Tiff Macklem increased the benchmark overnight rate to 4.75 per cent, ending a pause they declared in January after Canada’s economy proved surprisingly strong despite much higher borrowing costs.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

“Usually what happens in Canada, nobody in the U.S. cares,” Fidelity Investments portfolio manager David Wolf, a former adviser to the Bank of Canada, said on BNN Bloomberg Television. “But in this case, I think people are taking the message that maybe all of these central banks aren’t as close to done as people would have thought.”

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