The central bank rate is going up 50 basis points.
It now stands at one percent.
Tiff Macklem is the governor of the Bank of Canada and says we can expect future increases in the key interest rate.
“While we’ve been clear with Canadians that they should expect a rising path for interest rates, seeing their mortgage rates and other borrowing costs increase can be worrying,” states Macklem.
“We will be assessing the impacts of higher interest rates on the economy carefully.”
Macklem suggests that by raising the key interest rate, the inflation rate should start to go down.
“We’ve taken important steps. We’ve increased our interest rate today by 50 basis points to one percent. We’ve signaled that interest rates need to rise further. That will moderate spending growth in Canada. That will bring demand more in line with supply.”
Macklem says we can expect future rate increases to more normal levels like 2 or 3 percent.
