Bank of Canada raises interest rates 0.25%

The Bank of Canada announced Tuesday 24 January that it is raising its target for the overnight rate by one-quarter of one percentage point to 3 1/2 per cent. In a statement the bank said the move was necessary to keep inflation on target over the medium term.

The operating band for the overnight rate is correspondingly increased, and the Bank Rate is now 3 3/4 per cent.

Information received since the last interest rate announcement on 6 December indicates that the Canadian and global economies