'Need for speed': Bay Street reactions to BoC rate hike

The Bank of Canada delivered its biggest interest rate increase in 22 years on Wednesday, lifting its benchmark policy rate by half a percentage point to 1.0%. Here’s what Bay Street is saying about the decision:

The Bank of Canada delivered its biggest interest rate increase in 22 years on Wednesday, lifting its benchmark policy rate by half a percentage point to 1.0 per cent.

The central bank also plans to start unwinding its balance sheet as of April 25.

Here’s what Bay Street is saying about the decision:

“The Bank of Canada brought out the big guns in its fight against inflation, but for those fearing the worst, it’s noteworthy that it still sees room for the economy to put in two reasonably healthy years for growth as it does that.”

- Avery Shenfeld, chief economist, CIBC Economics

“We still expect the peak in Canadian rates to be markedly lower than in the U.S. — since housing is more obviously over-valued north of the border, household debt burdens are much higher and rate-sensitive residential investment accounts for a much bigger share of the economy.”