The Bank of Canada increased its benchmark rate by a whole percentage point on Wednesday, the most aggressive rate hike since 1998 and an even bigger jump than investors and Bay Street economists were expecting. This is the fourth consecutive interest rate hike since March, as central banks around the world attempt to curb runaway inflation and slow the pace of consumer price growth. The Bank of Canada’s policy rate now sits at 2.5 per cent.
Rapidly rising borrowing costs are already putting pressure on certain segments of the Canadian economy, most noticeably the housing market, which has seen declining prices and a slowdown in recent months. For homebuyers, being able to afford mortgage payments is increasingly becoming an additional hurdle to purchasing property. Read more...
The Globe and Mail
