Bank of Canada Rate Announcement - June 7, 2023
June 7, 2023 | Posted by: Ken Fadel
The Bank of Canada has hiked its overnight target rate by 25 basis points to 4.75%.
The move was partially expected by markets and marks the Bank’s first rate hike since January.
In its statement, the Bank stated that with consumption growth “surprisingly strong” and an uptick in inflation in April, it determined that “monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target.' The Bank said it will “continue to assess the dynamics of core inflation and the outlook for CPI inflation.”
The next scheduled date for announcing the overnight rate target is July 12, 2023. The Bank will also be publishing its next full outlook for the economy and inflation at the same time.