The Bank of Canada increased its target for the overnight rate by .25% this morning raising the overall rate to 4.50% and is continuing its policy of quantitative tightening.
The Bank's and CU's prime rates now will be 6.70% making the cost of borrowing more expensive.
Since last year March 2022, the bank of Canada has raised interest rates 8 times to bring inflation down which is now sitting at 6.3%.
Overall 2023 will be a tough year and the speculation is that by August 2023 things will start easing out and we might see interest rates coming down. The Bank expects CPI inflation to be around 3% in mid-2023 and back to the 2% target in 2024
Below chart: courtesy https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/