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Bank of Canada's Survey Shows Market Participants See First Bank of Canada Rate Hike in Q2 2027

BY MT Newswires | ECONOMIC | 11:28 AM EST

11:28 AM EST, 02/09/2026 (MT Newswires) -- The Bank of Canada is expected to raise rates by 25 basis points (bps) in Q2 2027, according to a survey of market participants published by the BoC on Monday.

The BoC's Q4 Market Participants Survey, conducted Dec. 16-30, showed a median of the participants forecasting the central bank to raise the policy rate by 25bps to 2.50 in Q2 2027, rising to 2.75% in Q4 2027.

A median of the participants forecast a gross domestic product growth of 1.6% this year and 1.9% in 2027. The consumer price index is predicted by the median at 2.1% this year and in 2027.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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