Canada's central bank has decided to raise rates by 1% for the first time in about 24 years on the 13th, as the world's central banks intensify monetary tightening to curb record inflation.
The Central Bank of Canada announced on the 13th that it raised the policy interest rate by 1% to 2.5%.
This is the first significant rate hike of 1%, which is four times the normal rate, for the first time in about 24 years since August 1998.
In Canada, consumer prices rose 7.7% in May due to rising energy prices and other factors, reaching a record level for the first time in about 39 years.
"It's a very unusual economic situation. If we slow down demand by raising rates, supply will catch up and inflationary pressures will ease," McClem said in a press conference.
Central banks around the world have been tightening their monetary policy to curb inflation, and the central bank of South Korea has decided to raise interest rates by 0.5% on the 13th, the largest ever.
In addition, the Central Bank of Europe will raise interest rates for the first time in 11 years later this month, and the US Federal Reserve Board is expected to raise interest rates in a row.
On the other hand, the Bank of Japan has shown a stance of continuing monetary easing, and the yen has continued to weaken and the dollar has strengthened in the foreign exchange market against the backdrop of different policy directions.