The Bank of Canada has hiked its rate again.

The rate is now at 4.75 per cent after the key interest rate announcement this morning which raised it by a quarter percentage point.

This is the highest the central bank rate has been since April 2001. There was a pause a bank rate hikes earlier this year.

The BOC says “underlying inflation remains stubbornly high. While economic growth around the world is softening in the face of higher interest rates, major central banks are signalling that interest rates may have to rise further to restore price stability.”

The Bank of Canada Governing Council decided to increase the policy interest rate, because they believe, based on the evidence at hand such as a tight labour market, better-than-expected economic growth in the first quarter and “surprisingly strong” consumption growth, that monetary policy was not sufficiently restrictive to bring supply and demand back into balance.