Morning Update: Bank of Canada raises key interest rate to 5%, highest since 2001

News Snapshot:

Good morning, The Bank of Canada is warning that inflation rates could stall around 3 per cent for the next year, before hitting the 2-per-cent target by the middle of 2025. Wednesday’s rate hike, with which interest rates hit 5 per cent, brings the policy rate to a level not seen since April, 2001. Consumer spending, the job market and the housing market have not responded to rate hikes in the way analysts expected. Population growth, a tight labour market, accumulated savings and spending by the federal and provincial governments are among the explanations the BoC pointed to for the...