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Canadian Imperial Bank of Commerce (CIBC)
Symbol CM
Shares Issued 904,692,428
Close 2022-09-02 C$ 61.67
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Globe says CIBC, rivals hear big rate hike in the works

2022-09-06 09:13 ET - In the News

Also In the News (C-BMO) Bank of Montreal
Also In the News (C-BNS) Bank of Nova Scotia
Also In the News (C-NA) National Bank of Canada
Also In the News (C-RY) Royal Bank of Canada
Also In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Tuesday, Sept. 6, edition that the Bank of Canada is expected to announce another oversized interest rate increase this week, pushing borrowing costs into "restrictive territory," despite signs that inflation has peaked and the Canadian economy is slowing down. The Globe's Mark Rendell writes that Bay Street forecasters and financial markets are betting the BOC will raise its overnight rate by 75 basis points Wednesday. That would lift the benchmark rate to 3.25 per cent, a restrictive level where monetary policy acts as a drag on the overall economy. A smaller, 50-basis-point hike and a larger, 100-basis-point move are also possible, some economists say. "By acting forcefully in raising interest rates now, we are trying to avoid the need for even higher interest rates and a sharper slowing down the road," BOC Governor Tiff Macklem said in an op-ed published in the National Post on Aug. 16. Several financial institutions, including Royal Bank of Canada and Desjardins, have said the BOC's rate hikes will likely push the Canadian economy into a recession in 2023. Mr. Macklem has said the BOC is willing to cause considerable economic pain to get inflation under control.

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