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News   December 9, 2022   by Adam Malik

Interest rates up again — is a pause coming?

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Canada’s interest rates are now at a level not seen in nearly 15 years.

The Bank of Canada upped its key interest rate by half a percentage point Wednesday. Now at 4.25 per cent, it’s the highest it’s been since January 2008.

The Dec. 7 announcement marks the seventh straight increase since March.

However, there are indications that the central bank may put a hold on aggressive rate hikes.

In a news release, the Bank said it “will be considering whether the policy interest rate needs to rise further to bring supply and demand into balance and return inflation to target.”

That’s a different tone from past announcements where further increases were foreshadowed.

The central bank noted “growing evidence” of restrained demand on the economy thanks to higher interest rates.

“Consumption moderated in the third quarter, and housing market activity continues to decline,” its statement said.

The annual inflation rate sat at 6.9 per cetn in October. The Bank of Canada’s target is 2 per cent. The Canadian Press reported that economists have pointed out that the three-month annualized inflation rate has dipped below 4 per cent. That suggests inflation is headed in the right direction.

The next interest rate announcement is expected Jan. 25.

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