Bank of Canada hints at raising interest rates in April 2022

The Central Bank of Canada kept its key overnight interest rate at 0.25% as expected and said it was ending its bond-buying program citing strong economic growth in Canada, high coronavirus vaccination rates and strong employment gains. The Bank of Canada has hinted that it may raise interest rates as soon as April 2022 and said inflation will remain above target for most of next year due to higher energy prices and supply bottlenecks.

"We now expect the recession to be absorbed sooner and this indicates that we will consider raising interest rates sooner than we previously thought," Bank of Canada Governor Teff McClem told reporters in Ottawa after the rate decision.