The Bank of Canada (the central bank) announced a 25 basis point interest rate hike on the 7th, raising the benchmark interest rate to 4.75%. This is another interest rate increase after the Bank of Canada kept the benchmark interest rate unchanged for two consecutive times this year. The Bank of Canada said that the interest rate increase again showed that the previous monetary policy was not enough to restore the balance between supply and demand and achieve the goal of a sustained return of the inflation rate to 2%. Bank of Canada said that Canada's inflation rate rose to 4.4% in April for the first time in 10 months, and prices of all kinds of goods and services were higher than expected. It is expected that the inflation rate will drop to around 3% this summer. However, as the three month core inflation indicator continues to range from 3.5% to 4% for several months, and excessive demand persists, the inflation rate may stick above the target of 2%. At the same time, the Bank of Canada announced that it would continue to reduce the size of its balance sheet in order to maintain tight monetary policy and restore the balance sheet of the central bank to normal. After the outbreak of COVID-19 in Canada at the beginning of 2020, the Bank of Bank of Canada quickly lowered the benchmark interest rate from 1.75% in February to 0.25% in March. From March 2022 to January 2023, the Bank of Canada announced eight interest rate increases, raising the benchmark interest rate to 4.5%. In March and April this year, the Bank of Canada announced to keep the benchmark interest rate unchanged for two consecutive times. (New News Agency)