Bank Of Canada Raises Interest Rates By Another Quarter Point

With persistent excess demand putting continued upward pressure on prices, the Bank of Canada on Wednesday announced its decision to raise interest rates by another quarter point.

The Bank of Canada increased its target for the overnight rate by 25 basis points to 4.5 percent, in line with expectations.

The Canadian central bank also said it is continuing its policy of quantitative tightening, which it said is complementing the restrictive stance of the policy rate.

If economic developments evolve broadly in line with its outlook, the Bank of Canada expects to keep interest rates at their current level while it assesses the impact of the cumulative rate hikes.