Bank of Canada raises interest rate to one per cent

Apr 13, 2022 | 8:47 AM

The Bank of Canada has boosted its key interest rate by half a percentage point to one per cent.

It’s the first half-point hike in more than 20 years and the central bank is warning that rates will need to rise further.

The increase is expected to prompt banks to raise mortgage rates and consumer lending rates.

The bank says inflation is rising higher than its earlier expectations, driven up by the spike in energy and other commodity prices in the wake of Russia’s invasion of Ukraine.

Bank of Canada raises interest rate to one per cent

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