Bond markets are demanding 'credibility' and could force the Bank of Canada to hike rates this year, says KPMG
- Posted on October 5, 2026
- By Financial Post
- 1 Views
- 1 min read
In brief
Bond market investors are signaling expectations for monetary policy adjustments at the Bank of Canada, according to KPMG's latest analysis. Rising yield pressures and inflation concerns suggest financial markets are pricing in at least one rate increase within the coming months. This market-driven pressure reflects investor confidence requirements and fiscal credibility demands, potentially influencing central bank decision-making beyond traditional economic indicators alone.
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Bond markets are demanding 'credibility' and could force the Bank of Canada to hike rates this year, says KPMG
The Bank of Canada is going to have to feed the bond market with one rate hike before the year is out, says KPMG Canada. Find out more.
