Markets Raise Bets on Bank of Canada Hikes as Oil Fears Mount

Markets see the Bank of Canada hiking interest rates more aggressively this year amid surging oil prices and hawkish messaging from peer central banks.

Traders in overnight interest rate swaps are betting Governor Tiff Macklem and his council raise borrowing costs by 75 basis points in 2026, starting with a quarter-percentage point hike in July, as of 2:30 p.m. Ottawa time on Friday.