The Bank of Canada raised its benchmark interest rate by 25 basis points on Wednesday, marking the first time since April 2001 that the figure hit five per cent.
The move was expected by economists after Statistics Canada released its June labour force survey last week, which showed that Canada added 60,000 jobs last month — further contributing to an overheated economy.
Wednesday’s rate hike marks the 10th by the central bank since March 2022. It hit pause on those hikes in January for a few months to determine whether the economy had sufficiently cooled, then resumed its campaign in June.
