KONTAN.CO.ID - OTTAWA. The Bank of Canada on Wednesday raised interest rates by half a percentage point - its biggest single move in two decades - and promised more hikes as inflation expectations soar, in part because of the war in Ukraine. The central bank raised its benchmark overnight rate to 1% from 0.5%. It also said it would allow government bonds it amassed during the COVID-19 pandemic to roll off as they mature, beginning what is known as quantitative tightening. Both moves were in line with analyst expectations. The Bank of Canada last hiked by 50 basis points (bps) in May 2000.
Bank of Canada Hikes Rates to 1%, Promises More Increases as Inflation Soars
KONTAN.CO.ID - OTTAWA. The Bank of Canada on Wednesday raised interest rates by half a percentage point - its biggest single move in two decades - and promised more hikes as inflation expectations soar, in part because of the war in Ukraine. The central bank raised its benchmark overnight rate to 1% from 0.5%. It also said it would allow government bonds it amassed during the COVID-19 pandemic to roll off as they mature, beginning what is known as quantitative tightening. Both moves were in line with analyst expectations. The Bank of Canada last hiked by 50 basis points (bps) in May 2000.