How high can Canada's prime rate go?

As part of its quantitative tightening plan to decrease Canada’s inflation rate to 2%, the Bank of Canada recently increased its policy interest rate by 50 basis points (0.50%). In response, almost all major banks and lenders in Canada have adjusted their prime rates accordingly, increasing interest rates across the board. This marks the seventh consecutive increase to the Bank of Canada’s target overnight rate in 2022 and has left many Canadians wondering just how high Canada’