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Bank of Canada raises key interest rate, says another hike possible
The central bank lifted borrowing costs by 25 basis points and raised its inflation forecast as energy prices threatened broader price pressures.
- On Wednesday, Oct. 28, 2026, the Bank of Canada raised its key policy rate to 2.5 per cent, marking the first increase in more than three years.
- Rising energy costs drove the annual inflation rate to 3.2 per cent in September, prompting the BoC to act and prevent generalized inflation from broader economic pressures.
- Governing Council members agreed that inflation risks had increased and less scope remained for monetary accommodation, though the central bank stated it will proceed carefully given economic uncertainties.
- The Bank projects inflation will end the year at 3.5 per cent and remain near three per cent next year, while upgrading GDP growth for 2027 to 2028 to two per cent.
- Trade tensions with the United States and conflict in the Middle East remain significant uncertainties as Macklem balances absorbing unused economic capacity against persistent inflationary pressures.
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The central bank of Canada raised on Wednesday the interest rate by 0.25 percentage point (p.p.), to 2.5% per year, the first increase since July 2023. The decision came in line with the consensus of the market and the members of the local government do not rule out the possibility of new heights in the future. Exclusive material for subscribers. To have full access, access the link of the subject and register.
·Rio de Janeiro, Brazil
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Rocky Mountain Outlook+11 Reposted by 11 other sources
Bank of Canada delivers 1st hike in three years, raises key rate to 2.5%
OTTAWA — The Bank of Canada raised its benchmark interest rate for the first time in more than three years on Wednesday as it warned higher costs from the war in the Middle East are likely to spread. The central bank’s policy rate now stands at 2.
·Canmore, Canada
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Coverage Details
Total News Sources55
Leaning Left25Leaning Right4Center11Last UpdatedBias Distribution62% Left
Bias Distribution
- 62% of the sources lean Left
62% Left
L 62%
C 28%
Factuality
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