As expected, the Bank of Canada raised its key interest rate to 4.5% Wednesday morning.
It is their first interest rate hike for 2023.
This latest interest rate hike marks the 8th consecutive hike in less than a year as inflation continues to remain high.
“Global inflation remains high and broad-based. Inflation is coming down in many countries, largely reflecting lower energy prices as well as improvements in global supply chains,” states the Bank of Canada.
“The Bank estimates the global economy grew by about 3½% in 2022, and will slow to about 2% in 2023 and 2½% in 2024.”
Canadians can only hope that no more interest rate hikes are announced this year. The next scheduled date for announcing the overnight rate target is March 8, 2023.