Bank of Canada hikes rates to 22-year high

Steady growth: The Changing of the Guard ceremony at the Parliament building in Ottawa. Economic rebound in Canada has been stoking price increases. — AFP

OTTAWA: The Bank of Canada (BoC) hiked its overnight rate to a 22-year high of 4.75%, and markets and analysts immediately forecast yet another increase next month to ratchet down an overheating economy and stubbornly high inflation.

The central bank had been on hold since January to assess the impact of previous hikes after raising borrowing costs eight times since March 2022 to a 15-year high of 4.50% – the fastest tightening cycle in the bank’s history.