Interest rate announcement from Bank of Canada governor Tiff Macklem

Bank of Canada’s Interest Rate Announcement: Increase of 0.25%

The Bank of Canada‘s overnight rate continues its upward trend. In this morning’s interest rate announcement, the Bank increased its key rate by 0.25%, to 5%, bringing the cost of borrowing up for a second straight month, to the highest interest rate since 2021. This marks the tenth rate increase since the Bank started its aggressive campaign to tackle inflation in March 2022. The Bank cited strong economic growth and the stubbornly high inflation rate as the reason for the increase. While inflation came down to a more-tepid 3.4% in May, compared to its peak of 8.1% last summer, the rate still sits above the Bank’s 2% target.

Rising interest rates through the last year have impacted…

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