Canada Breaking News

1. Bank of Canada expected to raise interest rates

Reuters reports that financial markets widely expect the Bank of Canada to raise its benchmark interest rate by 0.25 percentage points on Wednesday, October 28, to 2.5%. The move would be intended to prevent higher energy costs from feeding into broader inflation. The decision has not yet been announced.

Why it matters: A rate increase could mean higher borrowing costs for Canadians with variable-rate loans and other interest-sensitive debt.

Source: Reuters — Bank of Canada rate outlook