Bank of Canada hikes 100bp in bid to outpace inflation

Tiff Macklem
Tiff Macklem, governor of the Bank of Canada
Photo: Bank of Canada

The Bank of Canada increased its policy rate by a full percentage point on July 13, the biggest single rate hike since 1998.

“An increase of this magnitude in one meeting is very unusual,” said governor Tiff Macklem.

The bank said inflation “will likely remain around 8% in the next few months”. It said price rises in the components of the basket underlying inflation are broadening. And it warned expectations of inflation are rising, which risks entrenching continuing price increases.

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