Canadian dollar rallies as BoC hikes interest rate for the first time in 7 years

Image Courtesy of Reuters

By Linda Nguyen, The Canadian Press, July 12, 2017 

TORONTO – The Canadian dollar is higher this morning following a highly anticipated increase to the Bank of Canada’s key lending rate.

The loonie was trading at 77.90 cents US shortly after the central bank’s announcement — half a cent above Tuesday’s average price of 77.40 cents US.

The Bank of Canada says it’s raising its benchmark interest rate by a quarter of a percentage point to 0.75 per cent — its first increase in nearly seven years. The last time it increased the target rate was in September 2010.

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