Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening

The Bank of Canada raised its overnight rate goal to 112 percent today, with the Bank Rate at 134%

The deposit rate at 112 percent. The Bank is also maintaining its quantitative tightening stance (QT).

Inflation continues to climb internationally and in Canada, owing mostly to higher energy and food prices.

In April, CPI inflation in Canada hit 6.8%, significantly over the Bank's prediction, and is expected to rise further in the near term before beginning to drop

Inflation continues to spread as pervasive input price pressures flow through to consumer prices, with core measures of inflation ranging from 3.2 percent to 5.1 percent.

Almost 70% of CPI categories currently have inflation rates above 3%.

 The risk of persistently high inflation has increased.

The Bank will employ its monetary policy tools to bring inflation back to goal and maintain well-anchored inflation expectations.

The Governing Council continues to believe that interest rates will need to rise further due to the economy's excess demand and inflation remaining far above target and likely to move higher in the near term.

The Bank's primary monetary policy tool is the policy interest rate, with quantitative tightening serving as a backup.

the Governing Council is prepared to act more aggressively if necessary to meet its commitment to reach the 2% inflation objective.