Updated: Jan 25
Bank of Canada increases the policy interest rate by another 50 basis points, raising the overall rate to 4.25%. The move was widely expected by economists, who were anticipating a rate hike of either 25 or 50 basis points.
The Bank of Canada’s key interest rate now sits at its highest level since 2008.
With this raise, all banks' prime rate has moved up to 6.45% which will make an impact on the Variable Rate mortgages and LOC.
Hopefully, this raise will be the last raise to tighten the growing economic uncertainty globally. BOC is closely watching and monitoring the CPI inflation which is still at 6.9% but will make a decision for 2023 on Jan 25th with the next rate announcement.
Below chart: courtesy https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/