Monday, July 24, 2023 / by Matthew Daniel Tamburello
Matthew Daniel Tamburello
Team Leader & Broker
Trinity Real Estate Consultants
Central bank has raised policy rate 7 times this year in battle against inflation
The Bank of Canada raised its benchmark interest rate by 50 basis points on Wednesday, to 4.25 per cent.
This hike was expected, as Canada’s central bank has raised its rate seven times this year in its fight to quell inflation. These increases have had a huge impact on the rates that Canadian consumers and businesses get from their banks on things like mortgages.
Many are hoping this is the last of the increases, with the Bank not definitively indicating one way or another is the rate will have to go higher in order to bring supply and demand back into balance and return inflation to target.
“Looking ahead, Governing Council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target,” the Bank of Canada statement read.
The Bank of Canada’s key interest rate now sits at its highest level since 2008.
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