Canada's central bank raised its benchmark interest rate Wednesday by a full percentage point to 2.5 per cent. The bank's rate impacts the rate that Canadians get from their lenders on things like mortgages and lines of credit. And even after this record-setting increase, more hikes are expected, because of how serious the spectre of stubbornly high inflation is. "We are increasing our policy interest rate quickly to prevent high inflation from becoming entrenched. But if their rate jumps by a full percentage point, the way the bank's rate just did, that monthly payment will go up to $2,104 a month.

Source: CBC News July 13, 2022 23:38 UTC