It appears that the Bank of Canada would not raise rates for the year as shown in the poll from Reuters despite the central bank is likely to be more aggressive and tighten for next year more than anticipated. The recent unexpected rate hike of the central bank on Wednesday has surprised everyone. This is the second rate hike and further rate hikes are plausible despite the steadfast economic growth of the country making it the top against other developed countries. There is a likelihood for the bank to raise its rates for the third time this year which depends on a strong economic data in consonance with the forecasts and four major dealers anticipate the to raise it in the last quarter of the year. The overnight rate of the central bank is increasing to 1.75 percent by the end of 2017. It rose by twenty-five basis points which are more than the previous week forecast of the economists. If the Federal Reserve did not raise its rates, this could push the Canadian dollar higher and overlook the economic condition as described by the chief economist of a bank. Although, the central bank of Canada is less concerned about the strong dollar which has been more lenient compared to the past which implies they are giving less attention to the currency.
