Central Banks
Bank of Canada Hikes Rate to 4.25%, Signals Potential Pause
- Macklem raises by 50 basis points as economic momentum slows
- ‘This is a pivot,’ says Mendes, predicting no January hike
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The Bank of Canada raised interest rates aggressively for a sixth straight time, while opening the door to pausing its hiking cycle.
Policymakers led by Governor Tiff Macklem increased the benchmark overnight lending rate by 50 basis points to 4.25% on Wednesday, the highest since the beginning of 2008. The move was in line with the expectations of a slim majority of economists in a Bloomberg survey.