Economy 52,847 Posted July 13, 2022 Share Posted July 13, 2022 https://www.bnnbloomberg.ca/bank-of-canada-hikes-by-full-point-to-2-5-in-bid-to-crush-inflation-1.1791313 The Central Bank of Canada shocked markets by raising interest rates today by a full 1% instead of the 0.75% the markets were anticipating which would have still been a super hike in order to try to contain inflation This takes Canada's rate to 2.5% the highest in the OECD or major developed economies It also finally reaches the "neutral" level meaning it is a rate that is neither restrictive but also no longer adding stimulus either. It has not been in neutral since 2008 If the US raises rates by 0.75% as expected at the next meeting it will match Canada's as the US rate is currently 1.75% meaning it may also jump to 2.5% Link to post Share on other sites More sharing options...
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