Market bets on another jumbo interest rate hike in June – Financial Post

Trading in overnight swaps show investors are now fully pricing in a second 50-basis-point increase at the central bank’s June 1 meeting.

Canadian Imperial Bank of Commerce and Laurentian Bank of Canada switched their calls to a 50 basis point hike after the inflation report.

Macklem and his officials also raised their estimate for the neutral rate of interest — a level that neither speeds up or slows down the economy —  to between 2 per cent and 3 per cent.

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