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 reason behind the Bank of Canada's decision to raise interest rates by 25 basis points?

What was the significance of the uptick in inflation observed in April?

How did the recent economic growth and inflation trends influence the Bank of Canada's policy decision?

What factors did the Bank of Canada consider regarding core inflation and wage growth?

What implications does the Bank of Canada's statement have for future interest rate decisions?