Bank of Canada raises its key rate to 2.5%, its first hike in three years, and warns more may come
The Bank of Canada raised its benchmark interest rate by a quarter point to 2.5 per cent on Wednesday, its first increase in more than three years, saying further hikes may be needed to stop soaring energy costs from feeding broader inflation. Governor Tiff Macklem, who warned the move is 'not going to feel good,' said the bank expects inflation to reach roughly 3.5 per cent by the end of the year and stay at or above three per cent for much of next year, driven by high oil prices tied to the war in the Middle East. Energy costs advanced roughly 19 per cent year-over-year in September. The bank also noted the economy grew 3.3 per cent in the second quarter, and analysts will be watching growth and trade uncertainty in the months ahead for signs of whether more increases follow. Also in this briefing: Carney hosts von der Leyen in Montreal as Canada pursues closer EU ties; Joshua Kutryk becomes the first Canadian to walk in space since 2019.
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The Bank of Canada raised its overnight rate to two point five percent after seven holds.
September inflation jumped to three point one percent, fueled by oil surging to one hundred twenty-five dollars.
Official forecasts delay Canada's return to the two percent inflation target until mid-twenty twenty-eight.
Commercial banks pushed prime lending rates to four point seven percent following the central bank decision.
Canada and European Union leaders opted for a future alliance after rejecting associate membership language.
Joshua Kutryk became the fifth Canadian astronaut to perform a spacewalk outside the space station.
- 01Intro1 min
- 02Bank of Canada raises its key rate to 2.5%, its first hike in three years, and warns more may come: The Decision and Inflation Drivers2 min
- 03Bank of Canada raises its key rate to 2.5%, its first hike in three years, and warns more may come: Economic Fallout and the Path Ahead2 min
- 04Carney hosts von der Leyen in Montreal as Canada pursues EU associate membership1 min
- 05Where things stand1 min
- 06Joshua Kutryk becomes the first Canadian to walk in space since 20192 min
- 07Outro1 min
- Bank of Canada raises the policy rate by 25 basis points to 2½%
- Persistent energy inflation market signals drive BOC policy rate hike 250
- Bank of Canada raises rate to 2.5% as oil shock lifts inflation outlook
- Bank of Canada raises interest rate for first time in three years
- Bank of Canada raises key rate to 2.5%
- Bank of Canada hikes interest rate to 2.5% | Financial Post
- Bank of Canada raises interest rate as inflation projected to worsen
- Bank canada delivers first hike three years
- Bank of Canada says its interest rate hike is ‘not going to feel good’ - National | Globalnews.ca
- Bank of canada raises policy rate to 250 on higher inflation outlook 2nd update
- Mortgage costs are on the rise following rate hike — and could hurt the already weak housing market | CBC News
- How the latest interest rate hike could affect everyday Canadians - National | Globalnews.ca
- Canada welcomes EU leaders for talks on next steps in relationship
- Carney Hosts EU Leaders in Montreal as EU Drops “Associate Member” Term: how 17 outlets framed it | NewsCord
- PM Carney heads to Montreal to kick off high-stakes Canada - EU summit
- EU gives Carney the cold shoulder on associate membership | Toronto Sun
- Canada's new relationship with European Union will be 'closer to membership' than ever, senior officials say | CBC News
- EU backs away from offer to Canada to start ‘associate member’ talks
- youtube.com
- EU dropping associate membership title for its closer alliance with Canada | CBC News
- Canada-EU hope to solidify associate membership details next year, announcement unlikely at summit
- ISS astronaut will conduct Canada
- NASA nears end of space station solar array upgrade with Oct. 29 and Nov. 5 spacewalks
- 2026 10 29 nasa astronauts deploy new solar array during 100th spacewalk
- Astronauts Suit Up to Prepare for Power Upgrade Spacewalk - NASA
- Astronauts Are Go For Thursday’s Power Upgrade Spacewalk - NASA
- Canadian astronaut Joshua Kutryk to conduct his 1st spacewalk | CBC News
- Kutryk to become fifth Canadian astronaut to perform a spacewalk
- Weekly ISS update: a bigger Canadian role in Kutryk's spacewalk
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