The Bank of Canada has raised interest rates by half a percentage point – its biggest single move in more than two decades – and promised more increases to fight soaring inflation that is being driven in part by the war in Ukraine.
The central bank on Apr 13 raised its benchmark overnight rate to 1 percent from 0.5 percent.
It also said it would allow government bonds it amassed during the COVID-19 pandemic to roll off as they mature, beginning what is known as quantitative tightening.
Both moves were in line with analyst expectations. The Bank of Canada last raised by 50 basis points (bps) in May 2000. In remarks after the announcement, Governor Tiff Macklem said more rate increases would be needed.