Why the Bank of Canada changes rates

This week, the Bank of Canada raised their interest rate for the first time in seven years. But if you’re unsure of what that means or how it will affect you, keep reading. The BoC raised the target for its trend-setting overnight rate to 0.75 per cent from 0.5 per cent. It was the first rate-hike since September 2010, and it happened because economic performance so far this year has been stronger than the bank had originally expected. “The accumulation of evidence and the growth in our confidence that the economy is on a solid trajectory should be good news for everybody,” Stephen Poloz, governor…