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Bank of Canada raises benchmark interest rate to 2.5%

The Bank of Canada increased its trend-setting rate by one full percentage point today (Wednesday) the largest single hike since 1998.

Most economists had widely forecast that the bank would raise rates by three-quarters of a percentage point.

This brings the policy interest rate to 2.50 percent and comes after two consecutive hikes of 1/2 a percentage point this year.

The national inflation rate reached 7.7 percent in May the highest since 1983.

The central bank’s hike will put more pressure on consumer lending rates, especially mortgages.

with files from Vista Radio newswire

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