The Central Bank of Canada raises interest rates


The Canadian central bank again raised its key rate. However, it raised the prospect of a temporary halt to rate hikes. The Bank of Canada in Ottawa announced that the key interest rate would be increased by 0.25 percentage points to 4.50%. On average, experts expected an increase of this magnitude. It was the eighth consecutive rate hike.

However, this could have been the last interest rate hike yet. “If economic developments are broadly in line with expectations, the Board expects to maintain interest rates at current levels while assessing the impact of past rate hikes,” he said in a statement. However, we are prepared to raise the key rate further if necessary to bring inflation back below the 2% target. Inflation fell to 6.3% in December. In June, it was still 8.1%.

The promised interest rate break surprised financial markets. The Canadian dollar came under pressure against all major currencies. Canadian bond yields fell significantly.

Note: This report is part of an automated service of the German Press Agency (dpa), which works according to strict journalistic rules. It is not edited or verified by AZ online editors. Please send your questions and comments to [email protected]

Emily Bond

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