The Bank of Canada has raised its benchmark interest rate to the largest seen in over 20 years.
Canada’s central bank raised the interest rate by a full percentage to 2.5 per cent, the largest one time increase in the banks rate since 1998.
After a slash rate to record lows at the beginning of the pandemic, the bank has now raised the rate four times since March as part of its campaign to fight inflation which has risen to highest level in 40 years.
Several more rate hikes are expected over the coming months.