Bank of Canada Raises Key Interest Rate a Quarter-point to 4.0%

The Bank of Canada raised its key interest rate by a quarter percentage point to 4.0 per cent on Tuesday, continuing to increase the cost of borrowing for consumers and companies.

It's the sixth straight increase since last summer, when the central bank's overnight rate was at 2.5 per cent. And the bank hinted there may be at least one more rise in the offing.

"Some modest further increase in the policy interest rate may be required to keep aggregate supply and demand in balance and inflation on target over the medium term," the rate announcement stated.