Bank of Canada rate hike probability for next week surges to 87%; inflation expectations continue to heat up, with multiple institutions shifting to bets on a 25-basis-point rate increase.

Zhitong Finance APP has learned that as the Bank of Canada's latest survey shows an increase in consumers' long-term inflation expectations, more and more economists and traders expect the Bank of Canada to raise interest rates at next week's monetary policy meeting. Although Canada's latest inflation data came in below market expectations, market bets on a rate hike continue to heat up. The overnight interest rate swap market shows that traders now see an 87% probability that the Bank of Canada will raise rates on October 28.