Bank of Canada raises key interest rate to 2.5%
Briefing by News4U · First published
The Bank of Canada raised its key rate to 2.5% and warned further increases might be needed to contain inflation, Al Jazeera reported, citing Reuters.
The Bank of Canada raised its key interest rate to 2.5% on Wednesday, its first increase since July 2023, Al Jazeera reported, citing Reuters. The decision came as policymakers sought to prevent higher energy costs from spreading into broader inflation. [1]
Governor Tiff Macklem said further rate increases could be needed, while stressing that uncertainty required a careful approach. He cited a higher inflation outlook and a resilient economy as reasons for tightening policy. The report also highlighted uncertainty over trade relations with the United States and the Middle East conflict. [1]
Sources
- Bank of Canada raises interest rates for the first time in three years
Al Jazeera · · Full text