The Bank of Canada raises rates to a 22-year high, with additional increases anticipated.
In order to cool down an overheating economy and persistently high inflation, the Bank of Canada increased its overnight rate on Wednesday to a 22-year high of 4.75%. Markets and economists instantly predicted yet another increase next month. After increasing borrowing prices eight times since March 2022 to a 15-year high of 4.50% – the fastest tightening cycle in the bank’s history – the central bank had been on hold since January to evaluate the effects of prior hikes. Unexpectedly high consumer spending, a rise in service demand, an uptick in housing activity, and a tight labour market demonstrate that…