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Bank of Canada Hikes Key Interest Rate to 4.75%

Published 2023-06-07, 10:09 a/m
Updated 2023-06-07, 10:09 a/m
© Reuters.

By Ketki Saxena

Investing.com -- The Bank of Canada has raised its benchmark interest rate by 0.25% to 4.75%, taking interest rates higher after a 5 month long hiatus.

The move is contrary to expectations by the majority of economists, who expected rates to remain at 4.5% for the remainder of the year.

However, the BoC appears to have decided that recent economic data did meet the threshold to warrant another rate hike. 

The resurge in inflation during April saw it reach 4.4%, while Canada's gross domestic product (GDP) experienced growth up to 3.1% within this year's first quarter. Housing prices have also continued to climb despite significant interest rate hikes over the past twelve months.

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Wow. If you want to ease inflation limit immigration and fix the supply chain. All they are doing now is loading the spring to mortgage defaults
You will own nothing and be happy. 2030 Trudeau is on board and worked hard since getting in for that.
With the Liberals intention of raising immigration by an additional half million per year. Canada is going to be the RISH and poor.
More immigration will translate to more demand for homes which will result in higher home and rent prices and more demand for trades people required to build the homes. This will result in to higher wages and higher revenue for the construction industry who will pay more taxes. Inflation can only be balanced by having GDP equal to inflation says Elon Musk.
Its a game of Chicken Little. Be brave and raise the rate to 1.00% instead of .025%
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