The Bank of Canada raised its benchmark interest rate by 25 basis points on Wednesday, marking the first time since April 2001 that the figure hit five per cent.
The move was expected by economists after Statistics Canada released its June labour force survey last week, which showed that Canada added 60,000 jobs last month — further contributing to an overheated economy.
Following the announcement, experts diverged on whether Canadians could expect another increase after the summer. Trading in investments known as swaps — which bet on future central bank moves — imply there is a better than 75 per cent chance of another small hike at the bank’s next meeting on Sept. 6.
“While the Bank
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