(Finance) – The Central Bank of Canada at the end of today’s monetary policy meeting he followed the example of the Fed and raised interest rates by 50 basis points.
The cost of money thus went from 1% to 1.5%, the interbank rate rose to 1.75% and that on deposits to 1.5%. The decision was made in an attempt to curb runaway inflationwhich peaked at 6.8% and is set to rise again.
The Canadian central bank has also said it ready to act “with more force, if necessary” in an attempt to bring inflation back in line with the 2% target.
“The Governing Council – reads the statement – continues to believe that interest rates will have to increase further. The official interest rate remains the main instrument of monetary policy, while the quantitative tightening acts as a complementary instrument”.
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