AA / Montreal / Hatem Kattou
The Bank of Canada announced on Wednesday a fifth increase in its key rate since the beginning of the year, increasing it by 0.75% to set it at 3.25%.
This is what emerges from a press release issued on Wednesday by the Bank of Canada.
Like its previous ones, this increase is intended to curb the inflationary spiral in Canada. The inflation rate reached 7.6% last July, after crossing the 8% mark a month earlier, a peak for nearly three decades.
The Bank of Canada has set itself the objective of bringing the inflation rate back to a range of 1% to 3%, a level comparable to April 2021.
Referring to inflation, the Bank of Canada indicated that the drop in this rate is essentially due to the drop in gasoline prices, but this rate remains high for other products, particularly in terms of services.
The federal institution added that insofar as “short-term inflation expectations remain high”, the key rate “will have to increase further”.
“The effects of COVID-19 outbreaks, ongoing supply disruptions and the war in Ukraine continue to dampen growth and drive up prices,” the statement said.
Thus, and given this new increase, the key rate has increased by 3% since the beginning of 2022.