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Canadian banks began raising the prime rate after the Bank of Canada hike its interest rate by 50 basis points Wednesday.
Canadian banks began raising the prime rate after the Bank of Canada hiked its interest rate by 50 basis points Wednesday. Photo by Mark Blinch/Reuters files

The Bank of Canada increased its key interest rate by half a percentage point on Wednesday.

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The prime rate was going to be increased by 50 basis points by Royal Bank of Canada, HSBC Bank Canada, and other banks.

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The central bank surprised markets by hiking less than expected, signalling that it was close to the end of its rate hike cycle.

It was clear that more hikes are on the way as inflation continues to rise.

  1. Bank of Canada governor Tiff Macklem takes part in a news conference on Wednesday, Oct. 26.
  2. Bank of Canada governor Tiff Macklem raised interest rates by 50 basis points to 3.75 per cent Wednesday.

The Bank of Canada is close to the end of the tightening phase, but not there yet, according to the governor.

The central bank has raised its key interest rate six times in the last six months.

Canadian Press reports additional information.

  1. Bank of Canada governor Tiff Macklem raised interest rates by 50 basis points to 3.75 per cent Wednesday.
  2. Quiet firing can be demoralizing for an employee, which is exactly the point.
  3. Bank of Canada governor Tiff Macklem takes part in a news conference on Wednesday, Oct. 26.
  4. Prime Minister Justin Trudeau speaks during a press conference in Pickering, Ont.
  5. A woman walks past the Bank of Canada headquarters in Ottawa.