Canada’s central bank raises interest rate a full point

KIFI

Published July 13, 2022 8:35 AM

By ROB GILLIES
Associated Press

TORONTO (AP) — Canada’s central bank is raising its target interest rate by a full percentage point in an effort to fight inflation. And it warns more rate hikes are likely to follow. The Bank of Canada on Wednesday raised the overnight rate to 2.5% in the biggest increase since 1998 and the highest level since 2008. The bank said inflation is higher and more persistent than had been projected and the bank expects it will likely remain around 8% in the next few months. It blamed the war in Ukraine, ongoing supply disruptions and excess demand in Canada.

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