China News Service, Toronto, September 7 (Reporter Yu Ruidong) As the market generally expected, the Central Bank of Canada announced another interest rate hike on September 7, raising the benchmark interest rate, the overnight lending rate, by 75 basis points from 2.5% to 3.25%. It also reached the highest level of interest rates since the 2008 financial crisis.

　　This is the fifth straight rate hike by the Bank of Canada since March to curb high inflation not seen in nearly 40 years and seek a soft landing for the economy.

Among them, the rate hike on July 13 reached a rare 100 basis points.

The Bank of Canada also said that it will continue to implement quantitative tightening policy.

　　The Bank of Canada said current global and Canadian economic conditions were broadly in line with the bank's July forecast.

The fallout from the ongoing COVID-19 pandemic, supply chain disruptions and the conflict in Russia and Ukraine continue to depress economic growth and push up prices.

Global inflation remains high, and many central banks continue to tighten monetary policy.

While the U.S. labor market remains tight, its economic activity has slowed.

　　In Canada, although gasoline price inflation slowed down from 8.1% to 7.6% in July, if the oil price factor is excluded, the pressure of price increase is still increasing, and short-term inflation expectations are still high.

　　Meanwhile, the Canadian economy continues to experience excess demand and a tight labor market.

The country's economy grew 3.3 percent in the second quarter of this year, slightly weaker than the central bank had forecast, but consumption rose about 9.5 percent and business investment rose nearly 12 percent.

The housing market, which saw prices soar during the pandemic, is cooling as lending rates rise.

The Bank of Canada believes that the Canadian economy will slow in the second half of this year due to weak global demand and domestic monetary tightening to bring demand and supply more in line.

　　Taking into account the inflation outlook, the Bank of Canada predicts that there is still room for the policy rate to rise.

The central bank will continue to take necessary steps to achieve its 2% inflation target.

　　The next meeting of the Bank of Canada is on October 26.

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