3 More Interest Rate Hikes Are Coming This Year According To An Expert & It's Going To Hurt

Those frustrated by Canada's interest rates may just have to brace themselves again.

In an interview with the Financial Post, the chief economist at BMO Capital Markets, Douglas Porter, predicted that Canadians can expect Bank of Canada to have not one but three more interest rate hikes within this year.

"Our view is that they are actually going to continue to raise rates at the three meetings this year," he stated.

It may sound super grim but some solace can be found in the fact that he doesn't think it will be as severe as the July interest rate hike.

"We don't see a repeat of the 100 basis point move," Porter said. "I think that was a statement, a measure to convince the market and Canadians that they are well aware of the inflation challenge we are now facing and that they're on top of it."

He goes on to say that they think there will be another cumulative 1% interest hike over the next three meetings.

"There is a risk we might be surprised by them being on the high side. But it does seem to be that the end is within sight in terms of how high we're going to go."

In July this year, the Bank of Canada increased the interest rate by a full percentage, making it the largest one-time increase since 1998. It's a move designed to curb the inflation in Canada.

Rising interest rates are particularly bad for homeowners who took out variable rate mortgages, or anyone looking to take out a mortgage in the coming months. Increasing the interest rate could also lead to a recession, something that has happened in the past.

This year, Bank of Canada is expected to announce upcoming changes to its interest rate on September 7, October 26 and then again on December 7.

This article's cover image was used for illustrative purposes only.