Bank of Canada expected to announce 8th consecutive interest rate hike
Global News
Markets widely expect the central bank to hike its key interest rate by a quarter of a percentage point to bring its key interest rate to 4.5 per cent.
The Bank of Canada is set to announce its latest interest rate decision Wednesday morning as markets widely expect the central bank to hike its key interest rate by a quarter of a percentage point.
That would bring its key interest rate to 4.5 per cent, the highest it’s been since 2007.
The Bank of Canada has raised interest rates seven consecutive times since March in the face of decades-high inflation.
Economists expect Wednesday’s rate hike to be the last of the cycle.
Given there is a delay between hikes and their effects on spending, the Bank of Canada is expected to monitor how the economy evolves in the coming months.
The central bank will also publish its quarterly monetary policy report today, which will offer updated projections for economic growth and inflation.
Economists are predicting the central bank, which has made a rapid succession of large hikes since it began raising from near-zero in March, is nearing an end to the increases.
The rate hikes are intended to reduce stubbornly high inflation, which peaked over the summer, but the shock to the economy could lead to a recession.