Bank of Canada will make its latest interest rate decision Wednesday morning as it tries to put the brakes on runaway inflation.The central bank raised its key interest rate half a percentage point in April to one per cent – the biggest hike in 22 years, and one that followed a quarter-percentage-point bump in March.
Canadians may see a 0.5% interest rate hike this week thanks to ‘persistent’ inflation Economists are expecting the Bank of Canada to hike its key interest rate by another half-percentage point to 1.5 per cent on Wednesday.The Bank of Canada makes changes to its trendsetting interest rate in an effort to control inflation with a target of two per cent.According to Statistics Canada, the annual pace of inflation rose to 6.8 per cent in April, the fastest year-over-year rise in more than three decades.The soaring cost of consumer goods from gasoline to groceries has experts speculating that further interest rate hikes are on the horizon this year..