J.P.Morgan said on Wednesday that it now expects the Bank of Canada to deliver one last 25-basis point rate hike in October, citing the central bank's hawkish rhetoric and the risk of inflation persisting.

The Wall Street bank now forecasts BoC raising policy rates to 5.25%, while expecting a skip in September. It had forecast an interest rate of 5% for 2023 in a note on July 10.

The Bank of Canada hiked its key overnight rate by a quarter of a percentage point on Wednesday to a 22-year high of 5% and said it could raise rates further due to the risk of inflation stalling above its 2% target.

(Reporting by Roshan Abraham in Bengaluru; Editing by Janane Venkatraman)