Why did the bank of Canada raise its interest rate?

(Blair Gable/Reuters) The Bank of Canada raised its benchmark interest rate to 1.5 per cent on Wednesday and signalled that more hikes are on the way. The decision by the central bank to raise its rate by half a percentage point was widely expected as it moves to aggressively rein in high inflation.

Which Canadian banks have moved their benchmark rates?

Two of Canada's big banks have already moved their benchmark rates in response, with Royal Bank and TD raising their prime lending rates from 3.7 per cent to 4.7 per cent as of Thursday morning. The other major lenders are expected to follow suit in short order.

How has the bank of Canada tightening cycle impacted policy rates?

The Bank of Canada’s tightening cycle has now seen the policy rate rise 4.75 percentage points since March 2022. The central bank held its key rate steady in two consecutive decisions this year but came off the sidelines last month with a quarter-percentage-point hike.

When is Canada's next interest rate announcement?

The central bank’s next interest rate announcement is set for June 1, while its next monetary policy report, which will include its updated outlook for the economy and inflation, is scheduled to be released along with the bank’s July 13 interest rate decision. This report by The Canadian Press was first published April 13, 2022.