The Bank of Canada will announce its key interest rate this morning as inflation remains well above its target. Many economists predict the central bank will raise interest rates by three-quarters of a percentage point, taking its key rate to 2.25%. A rate hike of this size would be the largest single increase since 1998. After last month’s rate announcement, Governor Tiff Macklem said the central bank “may need to move faster” to reduce inflation. The Bank of Canada will also release its quarterly monetary policy report with updated economic forecasts. In a note, CIBC said it expected the central bank’s growth forecast to be cut from its last report due to weaker second-quarter GDP growth. This report by The Canadian Press was first published on July 13, 2022.
