Bank of Canada raises overnight rate target by 1/4 percentage point to 2 1/2 per cent

The bank of Canada just announced this morning that their overnight rate, the benchmark interest rate for the Canadian economy has risen by 1/4 of a percentage point. One of the causes for this rate hike is that "world oil prices have risen well above the Bank's earlier assumptions and the Canadian dollar has appreciated further." Expect rates for mortgages and car loans to rise in tandem, so consumers will be burdened with higher monthly payments on new homes and cars. We'll have to wait and see if the United States follows suit.

Learn more about the rate hike in "Bank of Canada raises overnight rate target by 1/4 percentage point to 2 1/2 per cent".