11/02/2022
In order to combat the deepening of inflation in the economy, the Bank of Canada announced on October 26th a further 0.5 percentage point increase in the key interest rate. Since March 2022, the policy rate has risen from 0.25 per cent to 3.75 per cent, an increase of 3.5 percentage points. This is the largest increase we have seen since 1994, when the policy rate rose by 4.5 percentage points between February 1994 and January 1995 [2]. However, the key interest rate level remains relatively low by historical standards. You only have to go back to 2008 to see a comparable level.
