The Bank of Canada (BOC) may have taken a big gamble on its economy when adopting a new hawkish tone on Wednesday, according to one economic research company.
The central bank raised interest rates to 0.75 percent from 0.50 percent – its first hike in seven years. Investors had prepared for such move but the BOC took a more hawkish tone than expected, mainly when it came to inflation.
Inflation figures have eased over recent months, but the bank said this was a temporary move and it is already registering some pressure from food, electricity and automobiles.
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