The Bank of Canada increased the policy interest rate by 1% Wednesday morning. The jump is more than what many financial pundits expected as the bank tries to get ahead of rising prices.
"Inflation is broadening because the Canadian economy is in excess demand. There aren’t enough goods and services to meet the demand we’re seeing as people enjoy a fully reopened economy," Bank of Canada Governor Tiff Macklem said. "Employers can’t find enough workers and they’re increasing wages to attract and retain staff. With households spending robustly, businesses are passing on higher input and labour costs by raising prices."
The Chamber recommends reaching out to your banker or mortgage expert to better understand the shifting landscape created by the Bank of Canada's announcements.