As we all expected … the Bank Canada raised its key interest rate target by a quarter of a percentage point this morning. The central bank’s rate is now set at 1.75%. This will result in lenders raising their PRIME lending rate.
This is the 5th increase since July 2017. The central bank says in a statement “that more hikes will be needed”, but this time around it omitted the word ‘gradual’ from its explanation on how it will approach future rate increases. Some observers anticipate future increases will come faster than they had previously expected.