The Bank of Canada increased its key interest rate by one percentage point Wednesday in the largest hike the country has seen in 24 years.
The move indicates the central bank will take a more aggressive approach to tackling inflation, which sits at a 39-year high of 7.7 per cent and has made groceries, vacations and other purchases more pricey.Commercial banks and other financial institutions usually raise or lower their mortgage rates in tandem with the Bank of Canada's interest rate hikes.
"We've seen 10 years leading up to this of continued housing increases and the housing market going astronomically insane. Now, it will level off no doubt with these interest increases." That won't be an easy feat for some Canadians. Campbell said she has seen studies saying Canadians have more debt than ever before and for every dollar someone in the country makes they owe an average $1.86.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Behind the curve' Bank of Canada tees up super-sized 75 basis point hikeThe central bank is on a campaign to cool an overheated economy and rein in soaring inflation. Read more here.
Read more »
'Behind the curve' Bank of Canada tees up super-sized 75 basis point hikeThe central bank is on a campaign to cool an overheated economy and rein in soaring inflation. Read more here.
Read more »
Posthaste: What a Bank of Canada 0.75% rate hike would mean for mortgages and indebted CanadiansSignals have been piling up that the Bank of Canada will hike rates by 75\u002Dbasis\u002Dpoint hike this week. Find out more
Read more »
Posthaste: What a Bank of Canada 0.75% rate hike would mean for mortgages and indebted CanadiansSignals have been piling up that the Bank of Canada will hike rates by 75\u002Dbasis\u002Dpoint hike this week. Find out more
Read more »
'Behind the curve' Bank of Canada tees up super-sized 75 basis point hikeThe central bank is on a campaign to cool an overheated economy and rein in soaring inflation. Read more here.
Read more »
Bank of Canada set to deliver even bigger interest rate hike on WednesdaySeveral economic indicators released since the Bank's last decision in June have reinforced the expectations of an outsized hike From alicjawithaj
Read more »