The Bank of Canada has raised interest rates to a 14-year high, while noting continued tightening of monetary policy to stop inflation from accelerating.
In its monetary policy statement, the central bank of Canada decided to raise the interest rate by 75 basis points to 3.25%, the highest level since April 2008.
The Bank of Canada's statement explained: "Given the inflation prospects, the Board of Governors believes that the interest rate will need to rise further."
The bank noted that while the headline inflation rate fell to 7.6 percent last July from 8.1 percent previously due to falling gasoline prices, core inflation continues to rise.
