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BANK OF CANADA INCREASES INTEREST RATES BY HALF-PERCENTAGE POINT, BIGGEST JUMP
IN DECADES


OFFICIALS MAKE SUBSTANTIAL UPWARD REVISION ON INFLATION, SAYING RATES HAVE
FURTHER ROOM TO CLIMB; NEW ZEALAND ALSO RAISES RATES BY HALF POINT

Fed's Brainard: Economy in a Period of Very High Uncertainty
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Fed's Brainard: Economy in a Period of Very High UncertaintyPlay video: Fed's
Brainard: Economy in a Period of Very High Uncertainty

Federal Reserve governor Lael Brainard declined to offer predictions when asked
about an inflation timeline at the WSJ Jobs Summit, citing the pandemic and
global events.
By
Paul Vieira
Updated April 13, 2022 2:23 pm ET

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OTTAWA—The Bank of Canada pulled the trigger on its biggest rate increase in
over two decades and said further rises are necessary to tame domestic spending
and keep long-term inflation expectations anchored closer to its 2% target.

The Bank of Canada lifted its target for the overnight rate by half a percentage
point from 0.50% to 1.0%. In its latest policy decision, the central bank also
said it would begin reducing the assets on its balance sheet, which expanded as
it made large-scale asset purchases for the first time to stabilize financial
markets during the pandemic. That process would begin April 25.

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