Central Bank of Canada hikes rate to 4.5% as expected, intends to suspend tightening cycle

OTTAWA, Jan 25 (Reuters) – The Bank of Canada on Wednesday raised its benchmark interest rate by 25 basis points to a 15-year high of 4.5%, signaling it would assess the cumulative effect of previous monetary tightening intends to stop the process of Growth.

The Canadian regulator’s decision is in line with analysts’ expectations.

The Central Bank raised rates at a record pace – raising it by 425 bp in 10 months. To combat high inflation, which peaked at 8.1% in the summer and then slowed to 6.3% in December.

Meanwhile, price increases in Canada are still more than three times the central bank’s target of 2%.

By 18:15 Moscow time, the Canadian dollar had fallen 0.3% to $1.341 against the US dollar following the publication of the Central Bank’s decision on the rate.

Original English post code available at: (Steve Shire and David Lynggren)