(November 17 – 10:30 ET) –
The Bank of Canada today reacted to
yesterday’s move by the U.S.
Federal Reserve Board by matching
the quarter-point rate hike with
one of its own.
The central bank raised its Bank
Rate to 5.00%. The operating band
for overnight interest rates was
also increased, moving the bank’s
target rate to 4.75%.
The bank says it made the move
in response to the Fed, the
implications of U.S. economic
developments for Canada, and recent
evidence of robust domestic
demand growth. It sees the move
as “timely action to preserve
Canada’s low inflation
environment.”
The chartered banks, in turn,
reacted quickly by increasing
their prime lending rates to 6.5%
from 6.25%, effective tomorrow.
The increases were led by Royal
Bank of Canada.
IE staff
For more please see: