Canada's Interest Rate Rising Again

The Bank of Canada is once again raising its benchmark interest rate as it sees the economy's powerful performance pointing to broader, more self-sustaining growth.

It's hiked its rate by one-quarter to 1% — its second 25-basis-point increase since July.

The central bank points to solid employment and wage growth leading to consumer spending for reasons behind the move.

Areas like exports and business investment were also cited in a statement released earlier today.

The move — which likely comes as a surprise to some — comes less than a week after new Stats Canada numbers showing the economy expanded 4.5% in the year's second quarter.

 

— with files from The Canadian Press —