Bank of Canada hikes key interest rate by 50 basis points Wednesday as inflation rages

The Bank of Canada announced another oversized hike of its key interest rate Wednesday morning as inflation continues in Canada and beyond.

The bank raised its target for the overnight rate to 1.5 per cent, an increase of half a percentage point. It also indicated plans to continue raising interest rates as inflation persists.

The overnight rate was close to zero at the onset of 2022, but the bank hiked the rate in March and again in April to curb inflation in housing and other areas.