[7] Economics IA2 Macroeconomics

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Article

Canada’s central bank raises interest rate a full point

KEY POINTS
● Canada’s central bank said Wednesday it is raising its target interest rate by a full percentage point in an effort to fight inflation — and warned more rate hikes are likely to
follow.
● The Bank of Canada raised the overnight rate to 2.5% in the biggest increase since 1998 and the highest level since 2008.
● The bank said inflation is higher and more persistent than had been projected and the bank expects it will likely remain around 8% in the next few months.

Canada’s central bank said Wednesday it is raising its target interest rate by a full percentage point in an effort to fight inflation — and warned more rate hikes are likely to follow.

The Bank of Canada raised the overnight rate to 2.5% in the biggest increase since 1998 and the highest level since 2008.

The bank said inflation is higher and more persistent than had been projected and the bank expects it will likely remain around 8% in the next few months. It blamed the war in Ukraine, ongoing supply disruptions and excess demand in Canada.

The bank warned that if elevated inflation becomes entrenched, the economic cost of restoring price stability will be higher…

 

  • 총 페이지수: 7 pages
  • 과목명: Economics
  • 주제: IB Economics IA (Macroeconomics)
  • The file is in PDF format.  
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[7] Economics IA2 Macroeconomics

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