Bank of Canada Increases Key Interest Rate

Wednesday, 7 June 2023 11:47

By Linda Morgan

Rate now sits at 4.75 percent

The Bank of Canada raised its key interest rate this morning, after a pause was announced earlier this year.

The rate has gone up by a quarter of a percent, to 4.75 percent.

This is the highest the rate has been since April 2021.

The central bank says the hike is needed in order to bring inflation down to its target of two percent.

The bank also notes there is a tight labour market, and the economy grew better than predicted in the first quarter of the year.

Experts predict inflation will still fall to about three percent this summer, but there are concerns that it may get stuck at higher than two percent.

More from Local News

Niagara Region Concludes Toronto Meetings

Regional officials met with provincial politicians to discuss Niagara issues
Gates Calling for MRI Wait Time Reduction

He says the current wait of 306 days is nearly double that of a year ago, and it's getting worse
OPP Ready to Keep Roads/Water Safe

Sergeant Kerry Schmidt asking everyone to be mindful of making a wrong decision this holiday weekend
PM Challenged to Cut Gas Taxes for Summer

Conservatives say it'll reduce the price at the gas pumps by 35-cents a litre
Hoverlink Signs Lease Agreement

It's an agreement with St. Lawrence Seaway, enabling trips across Lake Ontario, taking traffic off the highway
Tory MP Listening for Housing Solutions

Scott Aitchison was in St. Catharines, and heard about declaring a building a municipal asset to reduce cost
NRP Citizen's Police Academy to Start

This is not meant to train anyone as a police officer, but learn more about the NRP
Meet Police at NRP Open House

It's tomorrow at Pen Centre, in honour of Police Week

Bank of Canada Increases Key Interest Rate

Share

More from Local News