Bank of Canada Raises Rates Less Than Expected

The Bank of Canada raised interest rates by 50 basis points, less than the expected 75. This decision reflects the bank's struggle with high inflation and a slowing economy. Experts Warren Levely and Diana Avigdor discuss the implications, noting the potential for a technical recession and the impact on financial markets. The bank maintains a hawkish stance, indicating further rate hikes may be necessary. The discussion also covers market expectations and the need for central banks to shift from reactive to proactive strategies.

What are the revised growth projections mentioned in the discussion?

What is the significance of the market's expectations regarding the rate hike?