The Bank of Canada (the central bank) announced on the 12th that it would raise the interest rate by 25 basis points, raising the benchmark interest rate to 5%. Bank of Canada said that the inflation rate in Canada has dropped sharply this year as expected, and it is expected to fall to about 3% in 2024, but it will not fall to the target of 2% until the middle of 2025, which is slower than expected. Bank of Canada forecasts that Economy of Canada's economy will grow by 1.8% this year, will slow to 1.2% in 2024, and is expected to rise to 2.4% in 2025. 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, and began to raise interest rates again in June. (New News Agency)