Bank of Canada Raises Interest Rate Another 0.5% on April 13
The Bank of Canada has raised its key interest by another 50 basis points in this morning’s announcement, bringing it up to one per cent. This is the second in an expected series of rate hikes slated for 2022, and the biggest single increase since 2000.
The move follows a 0.25-per-cent increase at the Bank’s last interest rate announcement on March 2, which was the first upward move since October 2018, following a trio of decreases in March 2020, to help ease the economic fallout of COVID-19. This new upward trend is intended to rein in the rapid rise of inflation, which hit a 30-year high of 5.1 per cent in January, well above the Bank’s projection of two per cent.
The Bank cited the unprovoked invasion of Ukraine by Russia as a continuing source of major uncertainty, with spikes in the price of oil, natural gas and other commodities adding to inflation, and exacerbating ongoing supply chain disruptions.
In Canada, the Bank says the economy is chugging on all cylinders, with tight labour markets and wage growth back to pre-pandemic levels. Consumer spending is up as pandemic restrictions continue to ease, and businesses report difficulties meeting demand due to supply chain issues. The housing market is “exceptionally high” but the Bank expects it to moderate.
- What is the Bank of Canada’s current policy interest rate?
- When does the Bank of Canada announce its overnight rate?
- When is the next announcement?
- What factors did Bank of Canada consider in its latest decision?
Bank of Canada’s 2022 Schedule for Policy Interest Rate Announcements
Bank of Canada announces its decision for the overnight rate target eight times a year, typically on a Wednesday. The schedule for 2022 is as follows:
- Wednesday, January 26*
- Wednesday, March 2
- Wednesday, April 13*
- Wednesday, June 1
- Wednesday, July 13*
- Wednesday, September 7
- Wednesday, October 26*
- Wednesday, December 7
*Monetary Policy Report published
Read the full announcement below:
Interest Rate Archives
January 2020
Are you looking to buy or sell? Find our latest new RE/MAX Four Seasons Realty listings here and contact one of our agents who can assist you with all your real estate needs.
Article coutesy of blog.remax.ca.
(705) 445-8500
(705) 445-0589
REALTORS®
Close
Register
Log in
Mortgage calculator
