The Bank of Canada raised its key interest rate to 4.25% per annum - the highest in 14 years From IFX

The Bank of Canada raised its key interest rate by 50 basis points (bp), to 4, 25% per annum, following the meeting on Wednesday. The size of the rise coincided with the forecast of experts surveyed by Trading Economics, and the rate level reached its highest level since 2008.

The statement of the Bank of Canada, published at the end of the meeting, notes that the Central Bank is approaching the end of a sharp rate increase cycle, in during which its level soared by 4 percentage points since March.

“The Governing Council will assess the need for a further increase in the key rate to restore the balance of supply and demand and return inflation to the target value,” the Central Bank said in a statement.

Inflation in Canada was 6.9% in October, the same as in September, down from a peak of 8.1% in June, but still three and a half times the target level of 2%.< /p>


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