UPDATE: Bank of Canada Raises Key Interest Rate

Wednesday, 7 December 2022 08:28

By Linda Morgan

Rate now sits at 4.25 percent, the highest since January 2008.

The Bank of Canada has announced another interest rate hike.

The rate has risen by half a percent, to 4.25 percent.

This is the seventh consecutive increase this year.

The last time the bank's rate was this high was in January 2008.

Officials say in October, the inflation rate was at 6.9 percent, which is well above the bank's two percent target.

The bank says while there is evidence to suggest that higher interest rates are restraining demand in the economy, inflation is still too high.

Further rate hikes have not been ruled out.

The next policy rate announcement is expected on January 25th.

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