The Bank of Canada raised its key interest rate by another quarter-percentage point, bringing it to 4.5 per cent, the highest it’s been since 2007.

The central bank says if economic developments remain within its projection, it expects the rate spike to be the last of the cycle.

READ MORE: Interest rates increase by 50 points to 4.25%: Bank of Canada

Interest rates have now been raised eight consecutive times since March as the central bank fights off decades-high inflation.

In its quarterly monetary policy report, the Bank of Canada predicts growth in the economy will slow down through the first half of the year, while inflation is expected to ease to three per cent by the middle of 2023.

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