RBC Economics says it expects the Bank of Canada won’t hit the brakes on interest rate increases next week but is likely to slow them down.

As well RBC economists think the increase, which they are predicting will be a hike of 25 basis points bringing the overnight rate to 4.0 per cent, will be the last in this cycle.

While the Bank of Canada has indicated a 50 basis point hike is possible, there are tentative signs that inflation pressures have peaked.

But more importantly than the size of next week’s hike is how many more could follow and that depends on inflation.

Meanwhile, RBC Economics is also predicting a moderate recession in the first half of next year.