The Bank of Canada has increased its key interest rate a half a percentage point to 4.25 per cent. That’s the highest it has been since 2008. A news release from the Bank of Canada says GDP growth in the third quarter was stronger than expected and the labour market remains tight, with unemployment near historic lows.
Measures of core inflation remain around five per cent.

There is a hint in the news release that there may be a pause in the rate hikes in the future. It says, “Looking ahead, Governing Council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target.”