Canada benchmark interest rate of 3.75% and 0.5%P ↑…
The Bank of Canada, the central bank of Canada, raised its key interest rate by
0.5 percentage point to 3.75 percent, the highest level since early 2008.
The Bank of Canada held a regular rate policy meeting on the 26th local time
and made the decision by raising the benchmark interest rate six times in a
row since March as a record-breaking measure to curb inflation.
However, local media analyzed that the increase was lower than the economic
forecast of 0.75% points, somewhat easing the Bank of Canada’s existing
position on the need for a rate hike.
The Bank of Canada said in a statement that it would need additional interest
rate hikes to cope with steep inflationary pressures, but pointed out that rising
borrowing costs due to higher interest rates are already putting pressure on the economy, local media said.
The Bank of Canada said the effect of the rate hike is clear,
pointing out that the housing market has entered a long-term downward trend
and exports are slowing down as consumer spending and corporate investment have declined.