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Bank of Canada Expected to Raise Interest Rate Next Week

Economists predicting hike in interest rate next week.

The Bank of Canada is expected to increase the interest rate by a large amount next week.

Bank of Canada Governor Tiff Macklem has said the central bank remains concerned about high inflation rates. 

Some of Canada's major banks are predicting the bank will increase the key interest rate by three quarters of a percent to 3.25 percent. 

In July, the bank increased the rate by a full percentage point, which is the largest single hike since August 1998. 

Higher interest rates make it more expensive for Canadians and businesses to borrow money, and the bank is hoping that by making the cost of debt more expensive, spending and inflation will cool down. 

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