Bank of Canada Increases Rate to 1.5%

Bank of Canada raised its target for the overnight rate to 1.50%

With the Canadian economy operating close to capacity and that housing markets are beginning to stabilize following a weak start to 2018 coupled with other Global factors, the Bank of Canada felt an increase in the overnight rate was warranted.

Governing Council expects that higher interest rates will be warranted to keep inflation near target and will continue to take a gradual approach, guided by incoming data. In particular, the Bank is monitoring the economy’s adjustment to higher interest rates and the evolution of capacity and wage pressures, as well as the response of companies and consumers to trade actions. 

To read the full announcement – Click Here

The next scheduled date for announcing the overnight rate target is September 5, 2018.

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