2023.06.0714:14:00UTC+00Bank Of Canada Resumes Raising Interest Rates

After leaving interest rates unchanged for two straight meetings, the Bank of Canada on Wednesday announced it has decided to once again raise rates.

The Bank of Canada increased its target for the overnight rate by 25 basis points to 4.75 percent, citing stubbornly high inflation and stronger than expected economic growth.

Canada's central bank said the rate hike reflects its view that monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2 percent target.

The Bank of Canada also said it is continuing its policy of quantitative tightening, which it said is complementing the restrictive stance of monetary policy and normalizing the bank's balance sheet.

The bank's Governing Council said it will continue to assess the dynamics of core inflation and the outlook for consumer price inflation.

The Bank of Canada reiterated that it remains resolute in its commitment to restoring price stability for Canadians.