BoC sends housing market a message. Hikes 1/4-point

The Bank of Canada has sucker-punched rate floaters and the real estate market with a 25 bps rate boost.

In one swift statement, it has decidedly reset rate expectations. Market odds now have a July 12 hike at a 61% probability, with potentially another increase by December. Another move would take the benchmark prime rate from 6.95% at the end of today to a nosebleed 7.20% (last seen in February 2001).

BoC rate expectations by meeting (Source: Refinitiv Eikon OIS pricing)
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