Canada Raises Interest Rates

The Bank of Canada raised its key interest rate by 0.25 percentage points today, bringing it to 2.5%, the first increase since July 2023. The move comes amid concerns that rising energy prices could push inflation higher across the economy. Higher interest rates can help slow inflation, but they can also make borrowing more expensive for households and businesses. The Bank says further increases may be needed, although future decisions will depend on how the economy and inflation evolve. What does this mean for Canadians already dealing with higher living costs? Read our analysis of interest rates below!