Bank of Canada raises key interest rate by 0.75%

The Bank of Canada is raising its key interest rate by three-quarters of a percentage point Wednesday.

Many economists were expecting this rate hike, which brings the bank’s key rate to 3.25 per cent.

The central bank says worldwide inflation remains high while the Canadian economy continues to operate in “excess demand.”

Canada’s year-over-year inflation rate was 7.6 per cent in July, subsiding from 8.1 per cent in June.

The Bank of Canada says rates will need to increase further to bring inflation down to its two per cent goal.