- The Target Overnight Rate will increase by 0.50 percentage points to 3.75%.
- This is the highest Bank of Canada overnight rate since early 2008.
- Canada’s inflation rate dipped to 6.9% in September, but it’s still not enough for the Bank of Canada to ease off the brakes.
- Canada’s housing market continues to cool as interest rates rise across the country.
- Quantitative tightening (QT) began on April 25, 2022. This will gradually reduce the Bank of Canada’s balance sheet and put upward pressure on bond yields, driving up fixed mortgage rates
Key Points - Bank of Canada increases interest rate
October 26th, 2022 Bank of Canada announced a smaller than anticipated interest rate hike of 0.50%, bringing the rate to 3.75%. This is the highest overnight rate since 2008 although, historically it's still quite low. Here’s what you should know about the Bank of Canada’s October 26, 2022 rate announcement:
