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Bank of Canada raises interest rate to 1.25 per cent

Posted: January 17, 2018

The Bank of Canada raised its benchmark interest rate today by 25 basis points to 1.25 per cent

Bank of Canada Governor Stephen PolozCanadian Press

The Bank of Canada is raising its key interest rate target by a quarter of a percentage point.

The central bank’s target for the overnight rate now sits at 1.25 per cent.

The change is expected to prompt Canada’s large banks to raise their prime lending rates, a move that will drive up the cost of variable-rate mortgages and other variable-interest rate loans.