The central bank raised its key interest rate to 1.5 per cent, the second hike of 0.5 points in a row, as it tries to tamp down inflation. The most recent consumer price index showed an increase of 6.8 per cent, well above the bank’s two per cent goal, and “will likely move even higher in the near term,” it said in a statement explaining the decision this morning. (The Logic)

Talking point: The Bank of Canada said it expects to keep hiking interest rates to suppress demand, and “is prepared to act more forcefully if needed.” The statement is a list of economic challenges: “The Russian invasion of Ukraine, China’s COVID-related lockdowns, and ongoing supply disruptions” are making desired goods scarce. “Global financial conditions have tightened and markets have been volatile,” and in Canada, “job vacancies are elevated, companies are reporting widespread labour shortages, and wage growth has been picking up and broadening across sectors.” All this is pushing costs and prices up without producing real growth.