The central bank of Canada has decided to raise the policy interest rate for the first time in 3 years and 5 months because energy prices and other factors are expected to rise due to Russia's invasion of Ukraine.
The Bank of Canada, the central bank of Canada, decided on the 2nd to raise the policy interest rate by 0.25% to 0.5%.
The Bank of Canada cut its policy rate to 0.25% in March in preparation for the economic slowdown caused by the spread of the new coronavirus.
This is the first rate hike in about three years and five months since October 2018, and the Bank of Canada said in a statement, "Russia's invasion of Ukraine is putting pressure on energy and food-related commodities to rise further." He also mentioned that prices are expected to rise more than expected as of January.
Among the central banks of developed countries, the central bank of the United Kingdom and the Bank of England raised the policy interest rate twice last December and last month, and the FRB = Federal Reserve Board, which is the central bank of the United States, also has a zero interest rate policy this month. The policy is to lift the interest rate policy and raise interest rates, and there are a series of moves to tighten monetary policy in order to curb inflation.