BOC increased its benchmark interest rate to 4.75 per cent.

June 7, 2023 | Market Update | By The Rossettis

The Bank of Canada made a surprising decision to raise its benchmark interest rate from 4.5% to 4.75% on Wednesday, marking the first increase since January. The move comes as the Canadian economy has shown unexpected resilience and inflation has ticked higher. The rate hike is expected to make life more expensive for variable rate mortgage holders, and banks have already matched the increase by raising their prime lending rates. Economists have differing views on the bank's decision, with some questioning its impact on inflation and suggesting it could worsen the housing market. Despite the surprise, market observers are now anticipating further rate hikes in the future. The consensus view leans towards another 25-basis-point hike in July, potentially taking the policy rate to 5%.

Via: CBC >>

Source: Bank of Canada >>