Bank of Canada raises rates as economy nears potential

Bank of Canada
The Bank of Canada
Photo: Shutterstock

The Bank of Canada raised its key policy rate on January 17, as the economy operates close to potential and inflation growth approaches the 2% target, the central bank announced in a statement after its latest monetary policy meeting.

As a result, the governing council of the North American institution increased rates by 25 basis points to 1.25%.

Explaining the decision, senior deputy governor Carolyn Wilkins stresses three points in the statement. First, “labour market slack has indeed been

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