Why did the bank of Canada raise its interest rate?

(Blair Gable/Reuters) The Bank of Canada raised its benchmark interest rate to 1.5 per cent on Wednesday and signalled that more hikes are on the way. The decision by the central bank to raise its rate by half a percentage point was widely expected as it moves to aggressively rein in high inflation.

How much did Canada's Mortgage rate hikes add to the monthly payment?

The rate hikes already announced have added more than $1,000 to the monthly payment on a $500,000 mortgage — and that's before Wednesday's increase. Within hours of the central bank's decision, Canada's big banks all moved to match the bank's hike, raising their prime lending rates to 6.95 per cent.

What is Canada's key interest rate?

The central bank’s key interest rate now stands at 5.0 per cent following back-to-back increases. Many economists, including Canada’s big six banks, had expected the move amid signs of resilience in the Canadian economy and fears that annual inflation would not fall all the way back to the central bank’s target of two per cent.

Is Bank of Canada's latest rate hike 'fiction'?

Financial analyst Robert Levy looks at the Bank of Canada's latest rate hike and the critics who call the bank's forecast 'fiction.' – Jul 16, 2023 The Bank of Canada’s policymakers said they are still prepared to raise their benchmark interest rate further even as they hiked rates to their highest level in 22 years earlier this month.