The Bank of Canada is expected to announce today that it will raise its key interest rate for the fifth time this year.
Some Canadian banks anticipate the Bank of Canada raising its key rate by three-quarters of a percentage point, to 3.25 percent.
The rate increases will feed through to other lending rates, making borrowing money more expensive for Canadians and businesses.
The Bank of Canada, like other central banks around the world, has been raising interest rates in an attempt to slow the world’s skyrocketing inflation.
In July, Canada’s year-over-year inflation rate was 7.6 percent, well above the central bank’s 2% target.
In addition to high inflation, the rate decision also coincides with historically low unemployment and a relatively healthy Canadian economy. However, most experts believe that a slowdown in the economy is imminent.
The Canadian Press initially released this article on September 7, 2022.
