Bank of Canada’s Interest Rate Announcement: Increase of 0.25%
The Bank of Canada‘s overnight rate is back on the upswing, per June 7th interest rate announcement. The Bank raised its key rate to 4.75 per cent, marking the first increase since January and the highest rate we’ve seen since April 2001. Why the upward movement? The Bank cited stronger-then-expected economic activity as the reason for its decision, driven by consumer demand and consumption. Gross Domestic Product grew by 3.1 per cent in the first quarter of 2023. Inflation is expected to come down to three per cent this summer, well below its high point of 8.1 per cent reached last June, but it still sits above the Bank’s two-per-cent target.
Bank of Canada’s 2023 Policy Interest…
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