Bank of Canada Hikes Interest Rates to Highest Level in Decades


The cost of borrowing is going up again and this time it’s a doozy. The Bank of Canada raised its benchmark interest rates by 25 basis points Wednesday, bringing the cost of credit the highest since 2001.

The central bank’s key interest rate now stands at 5.0 per cent following back-to-back hikes.

Although inflation has cooled overall to 3.4% from as high as 8.1% in June 2022, many economists expected another hike as the Bank of Canada has failed to tame inflation to the 2% target.

Many economists, including Canada’s big six banks, had expected the move amid signs of resilience in the Canadian economy and fears that annual inflation would not fall all the way back to the central bank’s target of two per cent.

The central bank said in a statement that it now expects inflation will hover around three per cent for the next year before dropping to the 2% range in 2025.

The announcement comes as millions of Canadians face higher mortgage rates especially those in a variable rate mortgage , who could see their monthly payments increase by hundreds of dollars a month.


  • Craig Huckerby

    Craig Huckerby is a seasoned broadcast and media professional with over 43 years in local media. Starting in television, Craig became known as "the weather guy" on local television before pioneering internet media in the Sault. Craig is credited for bringing local television back to the Sault via the internet in 2003 with LTVNEWS.COM and was instrumental in launching and Craig has also won numerous International Film awards for director of the documentary, "Was I Next?, The Sean Cribbin Story"

    View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *