OTTAWA—As widely expected, the Bank of Canada raised its key rate by 75 basis points (0.75 percent) to 3.25 percent on Sept. 7 to keep dampening demand to reduce inflation.
This is the highest the central bank’s policy rate has been since April 2008 when it was 3.5 percent, just prior to the onset of the financial crisis.
The Bank of Canada previously said that the neutral range for its overnight rate target was between 2 percent and 3 percent, meaning that at 3.25 percent, the interest rate is now in restrictive territory and will act to cool down the economy. 
The BoC also made it clear that more rate hikes are coming….