The Bank of Canada has raised its overnight target rate by 50 basis points, bringing it to 3.75%.

This is the Bank’s sixth consecutive rate hike and was expected by markets.

The Bank said interest rates will need to rise further to “restore price stability” for Canadians, but that future moves will be data dependent.

“Future rate increases will be influenced by our assessments of how tighter monetary policy is working to slow demand, how supply challenges are resolving, and how inflation and inflation expectations are responding,” the Bank said in its statement accompanying the decision.

Banks and other financial institutions are expected to raise their prime rate in the coming days, which will increase rates for variable-rate mortgage holders.

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