BEFORE THE BELL: Investors watch for BoC interest rate hike hints; Aurora and BMO ink loan deal ahead of marijuana legalization
Canadians may get a preview today of what’s to come for interest rates on loans and mortgages.
Bank of Canada Governor Stephen Poloz is making a speech in Victoria, which some experts suggest could hint at whether or not another rate hike is coming next month.
Analysts say many central banks are being forced to tighten their policies as inflation continues to rise, mostly fueled by increases in crude prices. After falling over the last few weeks, crude is on the rise again as the US is pressuring OPEC to cut the flow coming from Iran. US crude is climbing to 71.18 this morning. This also comes ahead of an expected increase in gas demand as Canada and the US head into a long weekend.
But the Loonie, usually tied to crude increases, remains separate from the boost. The Canadian currency is steady at 75.14 cents US this morning.
The marijuana market continues to heat up in Canada as BMO joins the investment opportunity months before legalization. The Big Bank has inked a deal with Aurora Cannabis to provide up to $250 million in loans.