(David Ljunggren & Steve Scherer – Reuters)
The Bank of Canada on Wednesday raised interest rates as expected and said more hikes would be needed to keep inflation in check, while also hailing a new North American trade pact it forecast would reduce economic uncertainty.
The central bank – which has now lifted rates five times since July 2017 – tweaked its standard language on future hikes, dropping previous references to a gradual pace of tightening.
“In determining the appropriate pace of rate increases, Governing Council will continue to take into account how the economy is adjusting to higher interest rates, given the elevated level of household debt,” it said. Click here to read more.
- Bank of Canada Raises Interest Rate to 1.75% — Signals More Hikes Imminent (Global News)
- Bank of Canada Raises Rate to 1.75%, Signals More Hikes to Come (Financial Post)
Bank of Canada Links:
- Monetary Policy Report Press Conference Opening Statement
- Bank of Canada Increases Overnight Rate Target to 1¾ Percent
- Monetary Policy Report – October 2018