Bank of Canada raises interest rates 0.25%

The Bank of Canada announced on Wednesday 8 September that it would raise its key overnight interest rate by one-quarter of a percentage point to 2.25 per cent, a move widely expected by financial markets. In a press release the bank said with the economy operating close to its capacity, monetary stimulus needs to be reduced to avoid a buildup of inflationary pressures.

Data received since the July Monetary Policy Report Update indicate that Canada's economic growth in the first half of this y