Bank of Canada raises interest rates for the first time in more than three years, hiking the benchmark rate to 2.5% and warning of possible further increases ahead.

Zhitong Finance APP has learned that the Bank of Canada announced on Wednesday that it will raise its benchmark overnight rate to 2.5%, the first rate hike in more than three years, in response to inflation risks brought about by continued increases in energy prices. The central bank also warned that further rate increases may be needed in the future, but given the significant uncertainty in the economic outlook, subsequent policy adjustments will remain cautious. This rate hike was in line with widespread market expectations and also consistent with the consensus of economists in a media survey.