The Bank of Canada met market expectations, raising its key monetary policy interest rate by 25 basis points, to 0.75%.
The June jobs number from Statistics Canada was the last significant economic detail to be delivered before the Bank of Canada’s interest rate announcement today. The creation of more than 45,000 new jobs was far better than forecast and continues a trend that started about a year ago. It all but guarantees there will be an increase in the central bank’s trendsetting rate. As expected, the overnight rate increased by 0.25% to 0.75%.