Bank of Canada raises interest rates

Local Canadians have been expecting the Bank of Canada to raise the interest rates, but by just how much?

On March 2, 2022, the Bank of Canada raises interest rates overnight to 0.5%. The Bank stated, "economic growth in Canada was very strong in the fourth quarter of last year at 6.7%. This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed.".

The next question on many Candian's minds is inflation. The Bank has noted that "inflation is now expected to be higher in the near term than projected in January. Persistently elevated inflation is increasing the risk that longer-run inflation expectations could drift upwards.". 

For further information click the following link.

https://www.bankofcanada.ca/2022/03/fad-press-release-2022-03-02/