BREAKING: Bank of Canada raises key interest rate by 0.5%
The central bank is increasing its policy rate by half a percentage point to 1.5 per cent and warns that rates will need to rise further to rein in inflation.
It says Russia’s invasion of Ukraine, COVID-19 lockdowns in China and backlogged supply chains are fuelling higher prices for energy and food. The Bank of Canada says those global pressures along with low unemployment rates at home will likely push inflation well past its previously expected rate of 5.8 per cent for the first half of 2022.
The bank increased its benchmark interest rate by half a percentage point in April to one per cent — the biggest hike in 22 years, and one that followed a quarter-percentage-point bump in March. The move marks the first back-to-back half-percentage-point hikes since fixed-date rate announcements began more than two decades ago.A woman walks past the Bank of Canada building, in Ottawa, Wednesday, Sept. 6, 2017. The Bank of Canada will make its latest interest rate decision this morning as it tries to put the brakes on runaway inflation.THE CANADIAN PRESS/Adrian Wyld
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