Bank of Canada hikes rate to 2.5% in bid to crush inflation - BNN Bloomberg

Governor Tiff Macklem raised the central bank’s policy rate to 2.5 per cent in a decision announced Wednesday in Ottawa that warned of more hikes to come. The 100-basis-point move is the largest increase since 1998. Markets and economists were anticipating 75 basis points.

To explain the aggressive move, policy makers cited an economy “clearly in excess demand,” high and broadening consumer price gains and growing inflation expectations. Officials said they expect to continue raising interest rates further and will be “resolute” on bringing inflation back to target. The 100-basis-point increase follows consecutive half-percentage-point hikes in April and June, making the current tightening effort one of the most aggressive ever. Wednesday's super-sized increase brings rates into the neutral range, where borrowing costs are neither stimulative nor constrictive.

Policy makers also slashed their outlook for the Canadian economy. They now see gross domestic product expanding 3.5 per cent this year and 1.8 per cent in 2023, down from 4.2 per cent and 3.2 per cent respectively, as global growth moderates and tighter monetary policy impacts activity.

Official policy: Break everything.

Front load? Why didnt they do that months ago? Get a better translator that doesn't repeat or studder!!

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Bank of Canada readies rare 75-basis-point hike - BNN BloombergThe Bank of Canada is set to deliver a super-sized interest rate hike this week, as it accelerates efforts to withdraw stimulus from an overheated economy and rein in soaring inflation. I am wondering when the millennials figure out what negative home equity is Finally I'll be able to afford a home. Interest rates should never have gone below 3%. No many people will pay for their error.
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