Rate now at it's highest level since 2007 (Canadian Press image)

By The Canadian Press

Bank of Canada hikes key interest rate by quarter point, says it plans to hold

Jan 25, 2023 | 8:40 AM

OTTAWA – The Bank of Canada is raising its key interest rate by a quarter of a percentage point and says it expects this to be the last rate hike of the cycle.

Today’s interest rate increase marks the eighth consecutive rate hike since March as the central bank fights off decades-high inflation.

Its key interest rate now stands at 4.5 per cent, the highest it’s been since 2007.

The central bank says the Canadian economy is still overheated, prompting its governing council to raise interest rates once again.

However, if economic developments remain in line with its current projections, the central bank says it expects to hold its key interest rate at its current level.

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(The Canadian Press)