After maintaining its key rate at 4.50% three times since January 25, 2023, the Bank of Canada finally decided to increase it by a quarter of a percentage point, taking it from 4.50% to 4 .75%.
In a statement released on Wednesday, the Bank of Canada said that “in Canada, the economy was stronger than expected in the first quarter of 2023, with gross domestic product growth reaching 3.1%. The increase in consumption has been surprisingly strong and widespread”.
- Via QUB-radioSimon Brière, Senior Strategist at RJ O’Brien discusses the recent rate hike with Philippe-Vincent Foisy:
Note that on January 25, the Bank of Canada raised its key rate for the eighth consecutive time. Since then, it had maintained it at 4.50%.
The Governing Council explained that it had decided to raise the key rate, as it considered that “monetary policy was not restrictive enough to restore the balance between supply and demand and ensure a sustainable return to the target of 2% inflation.