Canada's Unexpected Rate Hike Highlights Global Struggle in Defining Rate Endpoints

The Bank of Canada’s decision to resume raising interest rates shook global bond markets and underscored the difficult task faced by central banks as they try to slow economic activity and tamp down inflation.

Policymakers led by Governor Tiff Macklem increased the benchmark overnight rate to 4.75%, ending a pause they declared in January after Canada’s economy proved surprisingly strong despite much higher borrowing costs.

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