Bank of Canada Delivers Surprise Rate Hike

The Bank of Canada unexpectedly raised interest rates by 25 basis points to 4.75%, citing hotter-than-expected economic growth and a recent uptick in inflation. Despite no press conference or updated projections, the decision reflects concerns over persistent underlying inflation and a strong job market. The Bank will continue to monitor core inflation and economic dynamics to achieve its inflation target.

What was the unexpected move made by the Bank of Canada that affected the Canadian dollar?

• Announcing a new economic projection

• Keeping interest rates unchanged

• Raising interest rates by 25 basis points

• Lowering interest rates by 25 basis points

What was one of the main reasons for the Bank of Canada's decision to raise interest rates?

• Faster-than-expected economic growth

• A decline in the housing market

• A decrease in global inflation trends

• A drop in wage growth

What did the Bank of Canada note about consumer inflation in their statement?

• It has been steadily increasing

• It is unaffected by global trends

• It has stabilized at a low level

• It is coming down, but underlying trends remain high

What was the significant change in inflation noted by the Bank of Canada in April?

• The first decrease in 10 months

• The first increase in 10 months

• A stabilization after 10 months

• A record low in 10 months

What will the Bank of Canada continue to assess in the future?

• The effectiveness of their press conferences

• The stability of the housing market

• The impact of global economic trends

• The dynamics of core inflation and excess demand