The Bank of Canada raised its policy interest rate today by 50 basis points, which aligns with what many experts had been predicting. The move indicates that measures are still required to return balance to Canada's economy.
Inflation has declined from 8.1% to 6.9%, though it's still well above the target of 2-3%.
"The Bank expects CPI inflation to ease as higher interest rates help rebalance demand and supply, price pressures from global supply disruptions fade, and the past effects of higher commodity prices dissipate," states today's news release. "CPI inflation is projected to move down to about 3% by the end of 2023, and then return to the 2% target by the end of 2024."
Another increase to interest rates is expected on Dec. 7, but will depend on how much demand has slowed, and how well improving supply chains are able to keep up.