Bank of Canada increases interest rate

The Bank of Canada increase the interest rate today to 4.75 percent.

While the global consumer price inflation is coming down, largely reflecting lower energy prices compared to a year ago, underlying inflation remains high according to the Bank of Canada.

In April, inflation increased to 4.4 percent. That was the first increase in 10 months. Prices for a broad range of goods and services were higher than expected.

The Bank Rate is at 5 percent and the deposit rate at 4.75 percent. The Bank is also continuing its policy of quantitative tightening.