Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday January 27, 2022
Despite record high inflation, Bank of Canada holds interest rate steady — for now
The Bank of Canada has decided not to raise its benchmark interest rate just yet.
Like many other central banks around the world, the bank slashed its core lending rate — known as the target for the overnight rate — at the onset of the pandemic in March 2020, to ensure that consumers and businesses had access to cheap lending in order to keep the economy afloat.
But two years of rock-bottom lending rates have been a major contributor to inflation, which rose to almost five per cent in Canada last month — its highest level in more than 30 years.