Posted On
Jan 25, 2023
The Bank of Canada has raised its overnight target rate by 25 basis points, bringing it to 4.50%. This is the Bank’s eighth consecutive rate hike and was expected by markets.
Looking ahead, the Bank of Canada said it "expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases,” but that it is also “prepared to increase the policy rate further if needed.”
There is a growing consensus that the Bank has now reached—or is nearing—the end of this rate-hike cycle. Officials from the Bank of Canada have indicated that its future rate decisions will be driven by economic data. The next announcement is March 8.
The good news is some progress has been made in the fight against record-high inflation.
*It's important to know this rate increase only directly impacts variable rate mortgages, lines of credit, and some car loans.