HomeBusinessBank of Canada expected to raise key interest rate to 2.25% as...

Bank of Canada expected to raise key interest rate to 2.25% as inflation soars – National

The Bank of Canada will make its key interest rate announcement this morning as inflation remains well above its target.

Most economists are forecasting the central bank will raise interest rates by three-quarters of a percentage point, bringing its key rate to 2.25 per cent.

Read more:

Bank of Canada will hike interest rate by 0.75% this week, economists predict

A rate hike of that size would be the largest single hike since 1998.

Following last month’s rate announcement, Governor Tiff Macklem said the central bank “may need to move more quickly” to bring inflation down.

The Bank of Canada will also release its quarterly monetary policy report with updated economic forecasts.

Story continues below advertisement

In a note, CIBC says it expects the central bank’s growth forecasts to come down since its last report because of weaker GDP growth in the second quarter.


Click to play video: 'Too much, too soon? Experts say rapid interest rates are pushing Canada closer to a recession'







Too much, too soon? Experts say rapid interest rates are pushing Canada closer to a recession


Too much, too soon? Experts say rapid interest rates are pushing Canada closer to a recession

© 2022 The Canadian Press

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

New updates