10.15°C Vancouver

Jul 13, 2022 3:47 PM - THE CANADIAN PRESS

Bank of Canada hikes key interest rate by full percentage point

Share On

The Bank of Canada raised its key interest rate by a full percentage point on Wednesday, marking the largest single rate hike since August 1998.

The central bank’s decision signalled a more aggressive approach to bringing skyrocketing inflation, which hit a 39-year-high of 7.7 per cent in May, back down to its target of two per cent.

Bank of Canada governor Tiff Macklem said the "Inflation is too high, and more people are getting more worried that high inflation is here to stay. We cannot let that happen."

In its latest monetary policy report, the Bank of Canada said inflation in Canada is “largely the result of international factors,” but that “domestic demand pressures are becoming more prominent.”

The rate hike Wednesday brings the Bank of Canada's target for the overnight rate to 2.5 per cent and is expected to prompt the commercial banks to raise their prime rates which will increase the cost of loans linked to the benchmark such as variable rate mortgages and home equity lines of credit.

Latest news

cricket-star-yuvraj-singh-meets-premier-david-eby-at-vancouvers-bc-place-as-excitement-grows-for-cricket-in-b-c
BCOct 11, 2025

Cricket star Yuvraj Singh meets Premier David Eby at Vancouver’s BC Place as excitement grows for cricket in B.C.

The Canada Super60 cricket series lit up Vancouver’s BC Place Stadium this weekend - and the excitement reached a new level when former Indian cricket star Yuvraj Singh was spotted in the stands alongside B.C. Premier David Eby. The two appeared together on the stadium’s big screen during the women’s match between Vancouver Thunderbirds and Toronto Sixers, drawing loud cheers from the crowd. Cricket fans in the arena - many from Surrey and the Lower Mainland’s South Asian communities - welcomed the moment as a sign of the sport’s growing stature in Canada. Premier Eby’s office had
vpd-investigates-trio-of-stabbings-along-yaletown-seawall
CanadaOct 10, 2025

Vancouver police search for suspect after three stabbed on Yaletown seawall

Vancouver Police are investigating a series of stabbings that occurred early this morning along the Yaletown seawall. Just after 7:30 a.m., officers responded to reports of multiple people stabbed along the seawall near David Lam Park. Three victims were located and taken to hospital with non-life-threatening injuries. The suspect fled the area before police were called and has not yet been located. Initial evidence suggests the attacks were random and unprovoked. The suspect is described as an Indigenous woman in her late 20s or early 30s. She is between 5’3” and 5’7”, has a slim bu
b-c-s-public-service-workers-escalate-strike-to-correctional-facilities
BCOct 10, 2025

B.C.'s public service workers escalate strike to correctional facilities

British Columbia jails have been added to the growing list of sites behind picket lines as public service workers escalate job action. The B.C. General Employees' Union says in a release that all its remaining unionized staff at adult correctional facilities across the province are now on strike. The union says the escalation brings the total number of work sites behind pickets to more than 470, with about 25,000 workers taking strike action across 20 ministries, Crown corporations and agencies. Union president Paul Finch says the escalation is due to the government's "lack of urgency" in comi
woman-attacked-by-bear-while-walking-dog-in-squamish-b-c-wildlife-area
BCOct 10, 2025

Woman attacked by bear while walking dog in Squamish, B.C., wildlife area

British Columbia's Conservation Officer Service is warning residents after a bear attack this week in the Squamish area north of Vancouver. The service says a woman was walking her dog in the Squamish Estuary Wildlife Management Area on Wednesday when she was attacked by a sow with its cubs. The woman only got a minor injury. The Conservation Officer Service says people should avoid the trail network at the Squamish Wildlife Management Area and, if they go, keep their dogs on a leash. The public has also been reminded to make noise while hiking, to carry bear spray and to never approach or fee
WorldOct 10, 2025

Blast at a Tennessee explosives plant leaves multiple people dead and missing, sheriff says

An explosion at a Tennessee military munitions plant has left multiple people dead and missing. The blast occurred Friday at Accurate Energetic Systems, about 60 miles southwest of Nashville. Authorities say secondary explosions have prevented rescuers from approaching the site. The cause of the explosion is not yet known. Emergency crews have been unable to enter the plant due to ongoing detonations. Residents miles away reported feeling the explosion, and video shows flames and heavy smoke rising from the debris. The company has not responded to requests for comment. Local officials describe

Related News