The Bank of Canada is expected to announce it will be raising its key interest rate Wednesday, making it the fifth consecutive increase this year.
Some Canadian banks are expecting the Bank of Canada to increase its key rate by three-quarters of a percentage point, bringing it to 3.25 per cent. Read more: Not all Canadians feel the pain of interest rate hikes.
Here’s why that might change The rate hikes will feed into other lending rates, making it more expensive for Canadians and businesses to borrow money.
The Bank of Canada, along with central banks around the world, has been raising interest rates in an effort to cool sky-high inflation.