Bank of Canada Raises Interest Rates Again
Major Banks Follow Suit
What it means for you
In a move that was widely expected, the Bank of Canada has raised its benchmark interest rate to 4.75 per cent. This is the eighth rate hike since March 2022, and the first since January. The move was prompted by concerns about rising inflation, which is currently at a 30-year high.
The Bank of Canada's rate hike will have a number of implications for Canadians. For starters, it will make it more expensive to borrow money. This could make it more difficult for people to buy homes, cars, and other big-ticket items. It could also make it more expensive for businesses to invest and expand, which could lead to slower economic growth.
On the flip side, the rate hike could also lead to higher interest rates on savings accounts and GICs. This could be good news for savers, who have seen their returns dwindle in recent years.
It is important to note that the Bank of Canada's rate hike is not a cure-all for inflation. It will take time for the full impact of the rate hike to be felt, and there is no guarantee that it will be enough to bring inflation back to the Bank of Canada's target of 2 per cent.
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