Bank of Canada raises rates despite falling inflation
Governor warns progress towards price stability “could stall”
The Bank of Canada raised its policy rates 25 basis points on July 12, taking the deposit rate to 5%.
“We’re taking it one decision at a time,” said BoC Governor Tiff Macklem. “We’re doing our best to balance the risks of over and under tightening.” The seven-member governing council’s decision leaves the overnight rate at 5%, and the bank rate at 5.25%.
“If we’re not careful the progress to price stability could stall,” warned Macklem. “It’s clearly too early to be talking about interest rate
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