BANK OF CANADA INCREASES INTEREST RATE TO 4.25%, THE HIGHEST IN ALMOST 15 YEAR

Wednesday morning, the Bank of Canada announced another interest rate increase — this time, it's an increase of 50 basis points to 4.25%, the highest level since 2008, and signaled the tightening campaign was near an end.

It's the 7th and final time Canada's central Bank will raise its rate to fight inflation this year. The previous one came in October, and the interest rate went up to 3.75%.

Those increases have significantly impacted the rates that Canadian consumers and businesses get from their banks on things like savings accounts and mortgages.

Many large bank economists see a rate peak near year


James Orlando, director, and senior economist with TD Bank, echoed the 25-basis-point call. He said a quarter-point step in January would allow the central Bank to finally sit back and let the lagged effects from its rate hikes to date take effect.


- James Orlando, director, and senior economist with TD Bank

The next policy rate announcement is expected on Jan. 25, 2023.

Source: Global News