Economists at Goldman Sachs believe that it’s the final rate hike for the Bank of Canada (BoC) this Wednesday, as the central bank is likely to pause tightening going forward.

Key quotes

"Our economists expect the BoC to slow the pace of hikes to 25bps at this week's meeting and to pause thereafter, assuming inflation is in line with our forecasts.

“We will be most focused on any potential changes in forward guidance or comments from Governor Macklem on the strength of the labor market.”

"Overall, risks lean toward a pause next week rather than a larger-than-expected hike in our view, meaning USD/CAD faces upside risk on the meeting. Until then, if the broad Dollar continues breaking lower, which seems to have few obstacles in the near term, CAD is likely to see additional weakness on crosses.”