The Bank of Canada’s benchmark interest rate is heading up to 0.75 per cent as economists had expected. The rate has gone unchanged at 0.5 per cent, since September 2010. This will increase mortgage costs, home equity lines of credit and other loans linked to big bank prime rates.
It comes after a strong start to the year and expectations of stronger economic growth for the rest of the year. The BoC says even as inflation remains below its two per cent target, economic growth is happening across a number of industries and regions.