OTTAWA—The Bank of Canada raised its key interest rate by a quarter of a percentage point  (25 basis points) to 4.5 percent on Jan. 25, and indicated that it expects that its rate-hiking cycle is complete, barring any significant future economic surprises.
“If economic developments evolve broadly in line with the MPR [monetary policy report] outlook, Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases,” the Bank of Canada said.
The central bank has now raised rates by 425 basis points in less than a year.
The BoC says that the economy continues to operate in a state of excess demand, which is still putting upward pressure on many prices, and that recent economic performance has been stronger than projected. The central bank estimates that the Canadian economy grew by 3.6 percent in 2022….