OTTAWA –
The Bank of Canada will make a key interest rate announcement this morning as inflation remains well above target.
Many economists predict the central bank will raise interest rates by three-quarters of a percentage point, bringing the prime rate to 2.25 percent.
A rate hike of that size would be the largest single increase since 1998.
After last month’s interest rate announcement, Governor Tiff Macklem said the central bank “may need to act more quickly” to reduce inflation.
The Bank of Canada will also release its quarterly monetary policy report with updated economic forecasts.
In a note, CIBC said it expected the central bank’s growth forecasts to be lowered after its latest report due to weaker GDP growth in the second quarter.
This report by The Canadian Press was first published on July 13, 2022.
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