Citing elevated inflation, the Bank of Canada on Wednesday announced its sixth consecutive interest rate increase of the year.
The Bank of Canada raised its target for the overnight rate by 50 basis points to 3.75 percent, although economists had been expecting another 75 basis point rate hike.
The Canadian central bank said the effects of its recent rate hikes are becoming evident in interest-sensitive areas of the economy, with housing activity retreating sharply and spending by households and businesses softening.
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Forex News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.