Bank of Canada raises key interest rate

The Bank of Canada has raised its key interest rate by three-quarters of a point to 3.25 per cent.

The central bank says global inflation remains high, meaning rates will need to rise further still.

Canada’s year-over-year inflation rate was 7.6 per cent in July, well above the bank’s two-per-cent target.

Today’s rate hike announcement matches up with what many economists were expecting.