Bank of Canada hikes interest rate to 5%

Many Canadians can expect more financial pain in their pockets and changes to everyday budgets.

The Bank of Canada has hit the economy with higher borrowing costs following its latest interest rate hike.

The central bank raised it another quarter point, bringing the overnight rate to 5 per cent, making it the tenth rate increase since March of last year.

It says the move is intended to slow down economic growth and reduce inflation.

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