BANK OF CANADA SURPRISES WITH AN UNPRECEDENTED HALF- POINT INTEREST RATE RISE TO 3.75%

Bank of Canada Gov. Tiff Macklem says the bank’s tightening phase is getting closer to ending

OTTAWA—The Bank of Canada raised its main interest rate on Wednesday at a lighter-than-expected pace, as the central bank said higher rates were weighing on consumption and predicted close to zero growth until the middle of next year.

Canada’s central bank increased its target for the overnight rate by a half-percentage point from 3.25% to 3.75%, the highest level in roughly 14 years. Three-quarters of economists surveyed last week by The Wall Street Journal expected the Bank of Canada to deliver a second straight 0.75-percentage-point rate increase, citing elevated inflation

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