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Bank of Canada Delivers Jumbo Rate Hike With More to Come

  • Macklem sees benchmark rising toward neutral level of 2% to 3%
  • Holdings of government debt will begin to roll off April 25
Bloomberg business news
Bank of Canada Raises Rates by a Half Point
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The Bank of Canada raised its key interest rate by half a percentage point in its biggest hike in 22 years, and said rates are poised to move significantly higher as it aggressively wrestles inflation down from a three-decade high.

Policymakers led by Governor Tiff Macklem increased the central bank’s overnight benchmark to 1% on Wednesday. Macklem said he expects rates will return to what they consider the “neutral range” of 2% and 3%, with policy makers prepared to move “forcefully” if needed.