Bank of Canada raises interest rates to 4.5% and plans to hold

The Bank of Canada raised interest rates for an eighth consecutive and potentially final time, saying it expects to move to the sidelines and weigh the impact of its rapid tightening.

Policymakers led by Governor Tiff Macklem increased the benchmark overnight lending rate by 25 basis points to 4.5 per cent on Wednesday, the highest level in nearly 15 years.

While the quarter percentage point hike matched expectations of markets and economists, most analysts didn’t see the central bank explicitly declaring a potential end point.