Bank of Canada raises interest rate 0.75%
Written By Karlie Malone
The Bank of Canada has raised the interest rate another 0.75% to a total of 3.25%. The intention of the rising interest rate is to get a handle on the inflation we are seeing in Canada post-pandemic. This is the highest interest rate we have seen in decades, a total of a 3% increase (from 0.25% to 3.25%) just this year.
Inflation has been at its highest in 30 years last month - 8.1%, it is on a slow decline due to gas prices.
The bank says that the interest rate will need to rise further to tackle inflation and get back to the 2% target rate.
Economists believe we can expect to see more interest rate hikes in the future.
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