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Bank of Canada raises key rate to 14-year high

The Bank of Canada raised its key interest rate by 50 basis points to 4.25% per annum. Thus, the rate level reached its maximum since 2008.

As stated in the regulator's statement published on December 7, "the governing council will assess the need for a further increase in the key rate to restore the balance of supply and demand and return inflation to the target value."

It should be noted that inflation in Canada in October was 6.9%, as in September, falling from the peak of 8.1% in June, but still three and a half times higher than the target level of 2%.

Bank of Canada raises key rate to 14-year high