Bank of Canada hikes policy rate to 5% - Breaking The News

Bank of Canada hikes policy rate to 5%

12 July

1 min read

UNSPLASH / PRAVEEN KUMAR NANDAGIRI

The Bank of Canada announced on Wednesday it decided to increase its policy interest rate by 25 basis points to 5%, the highest it has been since 2001.

"Global inflation is easing, with lower energy prices and a decline in goods price inflation. However, robust demand and tight labor markets are causing persistent inflationary pressures in services," the central bank stated in its monetary policy decision and expressed concerns that progress towards Canada's inflation hitting 2% "could stall."

The bank stressed it expects inflation to decline to around 3% next year and fall to 2% in the middle of 2025, marking a slower return to target than forecast earlier this year.

monetary policy bank of canada boc

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