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A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. Mike Segar, Reuters Image used for illustrative purpose
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)