The Bank of Canada raised its policy interest rate by 25 basis points to 2.5 per cent. It’s the first hike since July 2023. The central bank wants to control inflation by reducing the risk that high fuel prices could spill over and seep into the overall economy.

OTTAWA — OTTAWA - The Bank of Canada raised its policy interest rate by 25 basis points to 2.5 per cent. It’s the first hike since July 2023. The central bank wants to control inflation by reducing the risk that high fuel prices could spill over and seep into the overall economy.

  • Jason2357@lemmy.ca
    1·
    3 days ago

    They do have levers. Several in fact, while the BOC simply monitors one number and responds with the other.

    For just one option, the largest effect on monetary supply is taxes, not interest rates.