The Bank of Canada has raised its overnight rate target by 25 basis points to 4.75 percent, marking the highest level since 2001. Although the timing of the hike caught some in the market off guard, the strength of the economy proves that a potential imminent economic downturn or recession is looking less likely. The Bank of Canada did not include any forward guidance language in its June 7 statement, which signals the possibility of further rate hikes. Analysts predict that another 25 basis points rate increase in July looks likely, though the Bank of Canada will publish new quarterly forecasts on July 12. Currently, the economy continues to thrive, with consumers spending and exports surging in the first quarter. April’s home sales also marked the strongest monthly advance in almost three years. The strength in the economy is undeniable, and any potential recession has been pushed further into the future.