Bank of Canada raises rates by half a percentage point, according to analysts the Fed will be forced to do the same

The Bank of Canada raised the main interest rate by 50 basis points, it is the first G7 central bank to do so and with this move it overtook the Fed in the tightening turn.

In particular, according to ING, the Canadian central bank has assessed the impact of current and future inflation increasingly considerable on the economy and has thus decided to intervene on rates. This scenario should offer positive support for the Canadian dollar.

Thus, the Bank of Canada has set its prime rate at 1% and on April 25 will end its government bond purchase program. An aggressive monetary policy that, according to ING experts, will put further pressure on the FED in the choices to be made on rates.