Canada Ottawa/IBNS: The Bank of Canada on Wednesday raised its key interest rate by half a percentage point to 1 percent, the highest zoom in more than 20 years, media reports said.
The hike came in the backdrop of forecasts of inflation.
Governor Tiff Macklem has warned of further increase in rates considering the high inflation.
Macklem said as quoted by CTV News, "The invasion of Ukraine has driven up the prices of energy and other commodities, and the war is further disrupting global supply chains."
"We are also concerned about the broadening of price pressures in Canada," he added.
As a result, Canada's top banks including RBC, BMO have said they will also raise the rate by half a percentage point effective from Thursday.
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