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In response to high inflation, the Bank of Canada raised interest rates by 100 basis points on the 13th, raising the benchmark interest rate to the highest level since 2008. This move makes Canada the first G7 member to raise interest rates so significantly in this economic cycle
In response to inflation high, the Central Bank of Canada raised interest rates 100 basis points on 13, base interest rate therefore rose to the highest level since 2008. This move makes Canada the first G7 member to raise interest rates so significantly in this economic cycle.
The Bank of Canada announced on the same day that it would raise interest rates to 2.5%, the largest rate increase in 24 years. The bank also said it would still need to raise interest rates several times in the future. Reuters quoted economic analysts as predicting that the Bank of Canada may raise interest rates by 75 basis points in the future.
On April 20, a woman bought food in a supermarket in Vancouver, Canada. "The decision to raise interest rates by 100 basis points in one go is very unusual, but it does reflect the very unusual and unique environment we find ourselves in,"
McCallum said. : "Our expectation is a soft landing. I said that the path to a soft landing has narrowed... This is an important reason for us to take stronger action today."
According to the Bank of Canada, Canada's next few months The inflation rate is likely to remain around 8%, fall back to about 3% by the end of 2023, and return to the policy target level of 2% by the end of 2024.
Canada’s inflation rate reached 7.7% in May, close to a 40-year high. The Bank of Canada previously emphasized that excessive demand and high inflation are reflected in various industries, coupled with rising consumer expectations for continued price increases. These factors contributed to the central bank 's sharp interest rate hike.
The Bank of Canada also lowered its economic growth forecast for the country on the 13th, predicting that it will grow by 3.5% in 2022, 1.75% in 2023, and 2.5% in 2024. According to the bank: "This is mainly due to high inflation and the impact of tightening financial conditions on consumption and household spending."
(Original title: Bank of Canada raises interest rates by 100 basis points)
"In response to high inflation, the Bank of Canada raised interest rates by 100 basis points on the 13th, raising the benchmark interest rate to the highest level since 2008. This move makes Canada the first G7 member to raise interest rates so significantly in this economic cycle" Related video
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