Bank of Canada hikes interest rate to 0.5%

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Business·Breaking

The Bank of Canada has raised its benchmark interest rate to 0.5 per cent.

More small rate hikes expected as central bank tries to rein in inflation

The Bank of Canada slashed its benchmark interest rate when the pandemic began, but on Wednesday signalled that it will start to slowly raise it again to help rein in inflation. (David Kawai/Bloomberg)

The Bank of Canada has raised its benchmark interest rate to 0.5 per cent.

It’s the first time the bank has raised its rate since 2018. 

The central bank is expected to implement a series of small interest rate hikes this year as it tries to tame inflation that has risen to its highest point in decades.

The Bank of Canada’s rate affects the rates that Canadian consumers get on things like mortgages, lines of credit and savings accounts at their own banks.

More to come.

ABOUT THE AUTHOR

Pete Evans is the senior business writer for CBCNews.ca. Prior to coming to the CBC, his work has appeared in the Globe & Mail, the Financial Post, the Toronto Star, Canadian Business Magazine and — believe it or not — Circuits Assembly Magazine. Twitter: @p_evans Email: pete.evans@cbc.ca Secure PGP: https://secure.cbc.ca/public-key/Pete-Evans-pub.asc

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