Bank of Canada raises policy rate to highest level since 2001

The Bank of Canada raised its overnight rate by 25 basis points to 4.75 per cent on Wednesday, its first increase since pausing hikes in January.  The central bank’s key interest rate has not been this high since April 2001. Several factors led to the decision to raise the rate, including economic growth in Canada. Gross Domestic Product (GDP) exceeded expectations in the first quarter of this year, growing by 3.1 per cent. The Bank of Canada says demand in the economy has rebounded,