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Bank of Canada Readies Rare 75-Basis-Point Hike: Decision Guide

  • Macklem moving fast after falling behind curve on inflation
  • Largest increase since 1998 would bring policy rate to 2.25%
Tiff Macklem, shown during an interview in April, is poised to deliver the Bank of Canada’s biggest increase to borrowing costs since 1998.
Tiff Macklem, shown during an interview in April, is poised to deliver the Bank of Canada’s biggest increase to borrowing costs since 1998.Photographer: Justin Tang/Bloomberg
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The Bank of Canada is set to deliver a super-sized interest rate hike this week, as it accelerates efforts to withdraw stimulus from an overheated economy and rein in soaring inflation.

Governor Tiff Macklem is expected to raise the central bank’s policy rate by three quarters of a percentage point on Wednesday, to 2.25% -- the largest increase since 1998. That follows back-to-back half-percentage-point hikes in April and June, making the current tightening effort one of the most aggressive ever.