Bank of Canada raises interest rates less than expected

The Bank of Canada raised interest rates by half a percentage point to 3.75% which is less than expected, and the central bank has raised interest rates by 350 basis points since March which is the fastest tightening on record.

"This tightening phase is coming to an end, we're getting close but not there yet," Governor Teff McClem said, adding that the central bank was still far from its target of low, stable, and projected 2% inflation but was trying to balance the risks of under- and over-tightening. The bank's quarterly forecasts show two consecutive quarters of negative growth technical stagnation between the fourth quarter of 2022 and the end of the second quarter of 2023, and inflation is expected to return to the top of the control range of 1%-3% by the end of 2023 and to a target of 2% by the end of general