By Canadian Press

Second hike in two months

Bank of Canada raises key interest rate by 0.5 per cent

Jun 1, 2022 | 8:53 AM

The Bank of Canada is making a big raise to its key interest rate for the second time in two months as it forecasts even higher consumer prices this year.

The central bank is increasing its policy rate by half a percentage point to 1.5 per cent and warns that rates will need to rise further to rein in inflation.

It says Russia’s invasion of Ukraine, COVID-19 lockdowns in China and backlogged supply chains are fuelling higher prices for energy and food.

The Bank of Canada says those global pressures along with low unemployment rates at home will likely push inflation well past its previously expected rate of 5.8 per cent for the first half of 2022.

The bank increased its benchmark interest rate by half a percentage point in April to one per cent — the biggest hike in 22 years, and one that followed a quarter-percentage-point bump in March.

WHAT'S ON

Here is what's on this weekend in Medicine Hat and area: Dec. 13-15

Dec 14, 2024

IN THE COMMUNITY

Medicine Hat's Mustard Seed adding new shelter spaces at Alberta government's request

Dec 12, 2024

HOLIDAYS

Medicine Hat Kiwanis hosting Christmas dinner, applications due Friday

Dec 12, 2024

The move marks the first back-to-back half-percentage-point hikes since fixed-date rate announcements began more than two decades ago.

This report by The Canadian Press was first published June 1, 2022.

The Canadian Press