Adedokun Waliyu 
The Bank of Canada has raised its borrowing cost by a quarter of a percentage point, a move widely expected by economists and markets
The central bank announced its latest interest rate decision on Wednesday morning along with new economic projections. Forecasters widely anticipated the increase of 0.25 per cent, bringing the central bank’s key rate to five per cent.
The Bank of Canada raised interest rates last month, ending a previous pause on rate hikes.
It cited concern over a string of hot economic data, which suggested to its governing council that interest rates were not high enough to cool the economy and bring inflation down.
Economists predicted Wednesday’s rate hike given the labour market is still tight and inflation pressures are still high.
Canada’s annual inflation rate fell to 3.4 per cent in May, but less-volatile measures suggest prices are still rising rapidly.
