Bank of Canada raises interest rate by half per cent

The Bank of Canada rate is going up by another half a percentage point.

The central bank said in a statement released Wednesday morning that its key interest rate will need to rise even further in order to clamp down on high inflation.

Since March, the rate has climbed from 0.25 per cent to 3.75 per cent.

The Bank of Canada forecasts inflation will slow to three per cent by the end of 2023 before getting back to its two per cent target in 2024.

— With files from The Canadian Press