Bank of Canada expected to hike rates again. Here’s a timeline of how we got here
OTTAWA –
The Bank of Canada is anticipated to hike its key rate of interest by one other quarter-percentage level on Wednesday, bringing it to 4.5 per cent and persevering with one of many quickest financial coverage tightening cycles in its historical past amid warning indicators of a possible recession.
Here’s how we bought right here
Oct. 24, 2018: The Bank of Canada’s key rate of interest reached 1.75 per cent after step by step rising for the reason that 2015 oil worth crash that rippled via the Canadian financial system. That charge remained unchanged all through 2019.
March 4, 2020: The Bank of Canada reduce its key rate of interest by half a share level to 1.25 per cent amid financial considerations stemming from COVID-19, simply days earlier than the World Health Organization declared a worldwide pandemic.
March 13, 2020: The Bank of Canada introduced that it might decrease its in a single day charge goal by one other half share level to 0.75 per cent, efficient March 16, in a uncommon unscheduled announcement. At the time, the central financial institution referred to as the choice a “proactive measure” in response to the pandemic worsening, in addition to the numerous drop in oil costs.
March 27, 2020: The Bank of Canada lowered its key rate of interest to 0.25 per cent, a document low, and launched a quantitative easing program (or authorities bond-buying program) to additional stimulate the financial system as COVID-19 continued to unfold around the globe.
Oct. 27, 2021: With the financial system exhibiting indicators of recent life and COVID-19 restrictions lifting, the Bank of Canada introduced it was ending its quantitative easing program.
March 2, 2022: After maintaining its key rate of interest at 0.25 per cent for 2 years, the Bank of Canada raised it to 0.50 per cent. This got here amid stubbornly excessive inflation and an more and more unstable international financial panorama pushed by Russia’s invasion of Ukraine.
April 13, 2022: The Bank of Canada additional hiked its key rate of interest by half a share level to 1 per cent. The final time the central financial institution raised the in a single day goal charge by half a share level moderately than 1 / 4 was in May 2000.
June 1, 2022: At the beginning of this summer season, The Bank of Canada raised its key rate of interest by one other half of a share level to 1.5 per cent — the quickest year-over-year rise in additional than three a long time, to rein in a better than anticipated inflation charge of 6.8 per cent.
July 13, 2022: As projected, one other hike got here later in the summertime because the Bank of Canada raised its key rate of interest by a full share level, a uncommon transfer and the most important single charge hike since August 1998.
Sept. 7, 2022: For the fifth consecutive hike this 12 months, the Bank of Canada rose its key rate of interest to 0.75 per cent, to a complete of three.25 per cent — the very best key charge since May 2008. After the hike, in an Oct. 6 speech, Bank of Canada governor Tiff Macklem mentioned there’s extra to be finished.
Oct. 26, 2022: The Bank of Canada hiked its key rate of interest by half of a share level to three.75 per cent. The central financial institution mentioned charges might want to rise additional to clamp down on decades-high inflation. Earlier within the 12 months, economists had been anticipating the speed hike cycle to be accomplished by October.
Dec. 7, 2022: As a 12 months marked by charge hikes drew to an in depth, the Bank of Canada raised its key charge by one other half-percentage level to carry it to 4.25 per cent, the very best it has been since January 2008 and a rise of 4 share factors from the beginning.
This report by The Canadian Press was first revealed Jan. 25, 2022
