As Canada contends with its highest inflation rates in decades, its central bank is announcing an aggressive interest hike.This is the largest increase since August 1998. It surpasses many predictions that called for a 0.75 per cent hike.Indicators suggest inflation is at its highest point in 39 years, reaching 7.7 per cent in May. Major causes include the war in Ukraine and pandemic-related supply chain issues.
Officials say they are expecting inflation to jump as high as eight per cent before finally turning around.The rate affects how easy it becomes for banks to move money between each other.File photo courtesy of the Bank of CanadaCtrl+Enter
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