Bank of Canada raises its benchmark rate by 1%
The Bank of Canada increased the policy interest rate by 1%, an increase that exceeded expectations and the largest since 1998, as the bank attempts to control high inflation. The Bank is stating that inflation in Canada is higher and more persistent than expected and will likely remain around 8% for the next few months. The biggest drivers are the war in Ukraine, ongoing supply disruptions and excess demand in the Canadian economy. "With the economy clearly in excess demand, inflation high and broadening, and...
