Bank of Canada expected to announce 6th interest rate hike of the year

The Bank of Canada will announce its interest rate decision this morning, with markets widely expecting another sizeable rate hike.

Economists expect the central bank to raise its key rate by half or three-quarters of a percentage point as it tries to clamp down on decades-high inflation.

Wednesday’s rate hike would make it the sixth consecutive time the bank raises interest rates, making it the fastest monetary policy tightening in its history.

Canada’s annual inflation rate dropped slightly in September to 6.9 per cent but the cost of groceries continues to climb.

Economists expect another interest rate hike in December before the central bank hits pause to assess the impact of higher interest rates on the economy.

The Bank of Canada will also release its latest monetary policy report, which will include economic projections and its outlook on inflation.

by The Canadian Press