The Bank of Canada, the central bank of Canada, decided on the 25th to raise the policy rate by 0.25 percentage points to 4.5% to curb inflation.
Since last March, the interest rate has been raised eight times in a row, and the range of interest rate hikes has narrowed from the previous 0.5%.
In Canada, where inflation continues, the rate of increase in consumer prices compared to the same month of the previous year was 8.1% in June last year, but it has shrunk to 6.3% in December last year.
The Bank of Canada said in a statement that it had decided to raise interest rates further as persistent excess demand put upward pressure on prices.
With regard to future interest rate hikes, if the economic situation generally progresses in line with the current outlook, the current policy interest rate will be maintained while assessing the impact of previous interest rate hikes. The Fed is prepared to raise rates further if necessary to bring the rate back to its 2% target.
Major central banks in the world, such as the Fed (Federal Reserve System), the central bank of the United States, and the European Central Bank, are continuing to raise interest rates significantly to curb inflation.
However, the continuation of significant interest rate hikes could cool the economy, so there is growing interest in the financial markets as to how long interest rate hikes will continue among the world's major central banks.