The Financial Post reports in its Tuesday edition that the market is convinced that the Bank of Canada will hike the overnight interest rate on Wednesday. The Post's Jonathan Ratner writes that the futures markets are pricing in a more than 90 per cent chance of a 25-basis-point hike, which would bring the overnight rate to 0.75 per cent. Two-year government bond yields have spiked 40 basis points, and the Canadian dollar has jumped five per cent, since just before senior deputy governor Carolyn Wilkins's June 12 speech when she said that first-quarter growth had been "pretty impressive." She also questioned the need to maintain a very accommodative monetary policy. Governor Stephen Poloz echoed her thoughts, confirming that the two rate cuts of 2015 achieved their goal. Scotiabank's head of Capital Markets Economics, Derek Holt, said these dramatic movements amounted to a "rate tantrum" by markets caught flat-footed by the central bank's new intentions. According to Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets, "The biggest question markets will be watching for is the timing of the next move (October or January), and how aggressive the BoC will tighten through this cycle."