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The Bank of Canada raises the key interest rate to 1.25 per cent, a quarter per cent jump. Photo courtesy CBC.
For the third time since last summer, the Bank of Canada has bumped up its key interest rate.
The central bank has hiked the trend-setting rate to 1.25 per cent, up a quarter per cent.
The bank says a strong economy is driving the decision, although experts caution how quickly rates go up to avoid disruption.
The move is expected to make Canada’s banks raise prime lending rates, bringing the cost of variable-rate mortgages other loans higher.
The Bank of Canada says it will likely need to raise the rate even higher over time but will use future economic data when determining increases.
With files from the Canadian Press and CBC.
Andy Neal
