Breaking its conditional pause, Bank of Canada issues a 25 basis point taking the overnight rate to 4.75%

The Bank of Canada increased interest rates once again, after taking a short pause of only a few months.

Rewa

June 7, 2023

Today, the Bank of Canada increased interest rates once again, after taking a short pause of only a few months. The increase of 25 basis points takes the overnight rate to 4.75%. After two stronger-than-expected reports – by way of April’s inflation increase and Q1 2023’s GDP growth – this decision is not shocking but was not expected until July when the Bank issues its next Monetary Policy Report. As the cumulative impact of past rate hikes continue to slow demand and inflation, this decision is proof that the Bank is resolute in its determination to return inflation to the 2% target
Marwa Abdou, Senior Research Director, Canadian Chamber of Commerce