Bank of Canada Raises Policy Interest Rate to 4.75%
Important Update
The Bank of Canada's Governing Council has announced a policy interest rate hike of 0.25%, bringing it to 4.75% - the first such increase since January 2023.
This decision stems from mounting evidence indicating ongoing inflationary pressures. The Bank seeks to moderate rising prices by increasing borrowing costs and slowing economic growth.
Key Highlights
Alongside the rate hike, the Bank published its 2023 schedule for policy interest rate decisions and quarterly Monetary Policy Reports.
This increase marks a departure from previous larger rate hikes, suggesting a more cautious approach to monetary policy tightening.
The Bank claims that its rate increases are yielding desired results, citing a swift and substantial rise in the policy interest rate since March 2022.
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