Taux directeur Canada

The Bank of Canada raised its target for the overnight rate to 4.25% on Wednesday, in its ongoing quest to tame inflation. This marks the highest level for the key interest rate since January 2008, and the sixth hike this year.

In a statement accompanying the decision, the central bank said that "inflation remains high, well above the target of 2%." It also noted that "the global economic outlook has weakened, with growth slowing in many countries." Nevertheless, the bank said it "judges that further increases in the policy rate will be required to bring inflation back to target."

The Bank of Canada's latest move is part of a global trend of central banks raising interest rates to combat inflation. The Federal Reserve in the United States has raised its target for the federal funds rate by 3% since March, and the European Central Bank has raised its key interest rate by 2% since July.

The Bank of Canada's decision is likely to have a number of impacts on the Canadian economy. Higher interest rates will make it more expensive for businesses to borrow money, which could slow down economic growth. It will also make it more expensive for consumers to borrow money, which could reduce spending.

However, the bank's decision is also likely to help bring inflation down. Higher interest rates make it more expensive for businesses to raise prices, and they also encourage consumers to save more and spend less. This can help to slow the pace of inflation.

It is important to note that the Bank of Canada's decision is not a sign that the central bank is pessimistic about the Canadian economy. In fact, the bank said in its statement that "the Canadian economy is expected to grow by 3.3% in 2023, and by 2.5% in 2024." However, the bank also said that "inflation is likely to remain elevated in the near term, and the risks to the inflation outlook are tilted to the upside."

The Bank of Canada's latest decision is a reminder that the fight against inflation is not over. However, the bank is taking steps to bring inflation back to target, and it is confident that the Canadian economy will continue to grow in the years ahead.