The Globe and Mail reports in its Friday, Oct. 23, edition that markets expect the Bank of Canada to raise its key interest rate next week, likely leading to a rise in variable mortgage rates. The Globe's Salmaan Farooqui writes that the bond swaps markets placed the odds of a 25-basis-point rate hike at 78 per cent when the BOC announces its next interest rate decision on Wednesday. Those odds climbed sharply after comments over the weekend by Governor Tiff Macklem suggesting the BOC is becoming increasingly worried about the potential for higher inflation. A hike would impact variable-rate holders. As of Thursday, the lowest advertised variable mortgage rate for a five-year term was 3.45 per cent. Variable-rate mortgages have been stable since October, 2025, the last time the BOC changed its headline rate with a 25-basis-point cut. The policy rate has been at 2.25 per cent since then. The potential for higher variable rates comes at a time when fixed rates have also been steadily increasing owing to rising bond yields. Several economists, though, are cautioning against a rate hike, which typically slows economic activity. One economist says while the BOC is concerned about inflation, the economy is struggling.