Economics
Bank of Canada Hikes by 75 Basis Points, Signals More to Come
- Fourth outsized move brings rate to 3.25%, highest among peers
- But statement hints end of tightening cycle may be in sight
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The Bank of Canada delivered a fourth consecutive outsized interest-rate hike in a bid to slow the nation’s economy and drag inflation down from four-decade highs.
Policy makers led by Governor Tiff Macklem raised the benchmark overnight rate by 75 basis points to 3.25% on Wednesday, giving Canada’s central bank the highest policy rate among major advanced economies. Officials said they expect to continue raising rates in coming months.