The Bank of Canada raised its guideline rate from 1% to 1.5% on Wednesday to fight inflation, which “will rise in the short term before starting to fall,” the central bank said.
The Canadian central bank noted that the Russian invasion of Ukrainelockdowns due to the coronavirus pandemic in China and the persistence of disruptions in supply chains are contributing to higher prices.
The inflation in canada stands at a record in 30 years. In April it marked 6.8% in 12 months, mainly due to increases in food and housing prices.
The organism indicated that it will continue with its policy of monetary adjustment.