UPDATE: Bank of Canada Raising Key Lending Rate

Wednesday, 13 July 2022 06:22

By Tami Jeanneret/Linda Morgan

Key interest rate rises a full percentage point.

The Bank of Canada has raised its key interest rate by a full percentage point to 2.5 percent.

This is the largest single hike since August 1998.

The move is expected to put homeowners with variable rate mortgages into a cash crunch, as the big banks are expected to respond by raising rates.

The central bank is raising interest rates in order to fight back against inflation.

The bank says key factors behind the hike include the war in Ukraine, supply chain issues and excess demand in the Canadian economy.

More from Local News

Niagara Falls Needs Evacuee Help

Former CAO says it's not right that Niagara Falls is doing most of the work, adding evacuees may look homeless, but they're not
NRP Anticipating Another Budget Increase

The force expecting the budget to go up almost 15% for 2027
Police Find Missing Senior

Antoinette Fryns is safe now
Cyclist Killed in Niagara on the Lake

Police have charged a 22-year old man with impaired driving causing death
Province Investing Against Invasive Species

The $2-million will help the Niagara region
Niagara Driver Charged with Drug Impairment

OPP say this happened on Highway 17, when a car was seen weaving all over the road
Welland Man Arrested for Child Porn

Police say they noticed child sexual abuse material shared on a social media page early this month
28 More Doctors Hired in Niagara

The region and Niagara Health coordinating new partnership to find even more doctors