BANK OF CANADA RAISES INTEREST RATES TO 3.25%

OTTAWA - The Bank of Canada raised its overnight rate by 75 basis points, moving its policy rate to 3.25 per cent from 2.5 per cent. Since March, the bank has increased its policy rate by 300 basis points -- the fastest pace since the mid-1990s -- in an attempt to bring inflation back to its mandated two per cent target.

The bank attributes the war in Ukraine, ongoing COVID-19 lockdowns in China and volatile commodity prices as the main drivers of elevated global inflation.