The Bank of Canada will announce its interest rate decision this morning as economists widely expect the central bank to opt for a quarter percentage point rate hike. The Bank of Canada is shown in Ottawa on Tuesday, July 12, 2022. THE CANADIAN PRESS/Sean Kilpatrick
OTTAWA – The Bank of Canada is set to announce its latest interest rate decision this morning as markets widely expect the central bank to hike its key interest rate by a quarter of a percentage point.
That would bring its key interest rate to 4.5 per cent, the highest it’s been since 2007.
The Bank of Canada has raised interest rates seven consecutive times since March in the face of decades-high inflation.
Economists expect today’s rate hike to be the last of the cycle.
Given there is a delay between hikes and their effects on spending, the Bank of Canada is expected to monitor how the economy evolves in the coming months.
The central bank will also publish its quarterly monetary policy report today, which will offer updated projections for economic growth and inflation.
This report by The Canadian Press was first published Jan. 25, 2023.
