UPDATE: Bank of Canada Raising Key Lending Rate

Wednesday, 13 July 2022 06:22

By Tami Jeanneret/Linda Morgan

Key interest rate rises a full percentage point.

The Bank of Canada has raised its key interest rate by a full percentage point to 2.5 percent.

This is the largest single hike since August 1998.

The move is expected to put homeowners with variable rate mortgages into a cash crunch, as the big banks are expected to respond by raising rates.

The central bank is raising interest rates in order to fight back against inflation.

The bank says key factors behind the hike include the war in Ukraine, supply chain issues and excess demand in the Canadian economy.

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