Bank of Canada raises rates to 2.50%, first hike in more than three years
The Bank of Canada raised its overnight rate by 25 basis points to 2.50%, its first hike in more than three years, in line with market expectations. The bank said it acted to prevent elevated energy prices from spilling over into other goods and services, and noted that further hikes "may" be necessary, though it will proceed "cautiously" and decide "meeting by meeting". It revised its inflation forecast higher: CPI would reach 3.5% by late 2026 and would not return to the 2% target until mid-2028.
In 40 seconds
- The overnight rate rises 25 bp, from 2.25% to 2.50%, in line with market and Bloomberg consensus.
- The bank aims to prevent high energy prices from passing through to other goods and services.
- The inflation forecast is revised higher: 3.5% by late 2026 and a return to 2% no earlier than mid-2028.
Read the full story at XTB.com
IASummary generated by artificial intelligence from a story by XTB.com. It may contain errors: the original source prevails.
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