To cool red-hot inflation, Canada’s central bank has aggressively raised lending rates after slashing its rate to near zero in 2020 to stimulate the economy at the start of the pandemic.
Consumers and businesses get mortgages, credit lines, and savings accounts at different rates depending on the bank’s rate.
On Wednesday, the Bank of Canada raised its trendsetting interest rate by three-quarters of a percentage point, the latest step in its battle against runaway inflation.
This is the highest rate for the bank since early 2008, before the financial crisis, when the rate was 0.25 per cent.