The Bank of Canada raised its benchmark interest rate by a quarter of a point to one per cent on Wednesday.
It’s the second time this year that the central bank has upped the rate, after hiking it for the first time in seven years in July.
The central bank’s rate has an impact on lending rates that consumers and savers get from banks on mortgages, lines of credits, savings accounts and other financial vehicles.
The bank’s rate — officially known as the target for the overnight rate — is now back to where it was at the start of 2015, when the central bank started slashing rates to stimulate a Canadian economy that had been waylaid by the oil price crash.
The Canadian dollar gained more than a penny in reaction to the news on Wednesday, and was briefly changing hands at 82 cents US — the loonie’s highest level since June 2015.
Economists and currency traders …
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