According to Jinshi, Karl Schamotta, chief market strategist at foreign exchange company Corpay, said that investors may underestimate the impact of interest rate hikes on the Canadian economy. They do not expect much difference in interest rate policies between the Federal Reserve and the Bank of Canada. According to overnight index swaps, investors expect the Federal Reserve and the Bank of Canada to cut interest rates six times in the next two years, which means that the interest rate spread will stabilize at its current level. Schamotta believes that rising longer-term interest rates will be a bigger drag on Canadian consumer spending than in the United States, and said that housing market activity may stagnate for some time. He expects the Bank of Canada to cut interest rates frequently, forcing traders to reassess their interest rate outlook.