The Bank of Canada Policy Interest Rate Announcement
BREAKING NEWS The Bank of Canada has hiked its overnight target rate by 25 basis points to 5.00%. The move was expected by markets and marks the Bank’s 10th rate hike since starting this rate-hike cycle in March 2022. In its statement, the Bank stated "Governing Council will continue to assess the dynamics of core inflation and the outlook for CPI inflation. In particular, we will be evaluating whether the evolution of excess demand, inflation expectations, wage growth and corporate pricing behaviour are consistent with achieving the 2% inflation target. The Bank remains resolute in its commitment to restoring price stability for Canadians." Inflation eased to 3.4% in May from it's peak of 8.1% last summer however demand and labour markets are causing inflationary pressures. [...]