The Bank of Canada hiked its key interest rate by half a percentage point Wednesday to 4.25 per cent 香蕉视频直播� the highest it香蕉视频直播檚 been since January 2008 香蕉视频直播� while signalling it may pause its aggressive rate hike cycle.

Since March, the central bank has raised its key interest rate seven consecutive times in an effort to bring inflation down and slow the economy.

香蕉视频直播淟ooking ahead, [the] governing council will be considering whether the policy interest rate needs to rise further to bring supply and demand into balance and return inflation to target,香蕉视频直播� the Bank of Canada said in a news release.

That language is a marked departure from previous announcements where the bank said more rate hikes should be expected.

In note to clients, CIBC chief economist Avery Shenfeld said 香蕉视频直播渢he Bank of Canada flashed a yellow card on its rate hiking team.香蕉视频直播�

In its news release, the Bank of Canada said there香蕉视频直播檚 香蕉视频直播済rowing evidence香蕉视频直播� that higher interest rates are restraining demand in the economy.

香蕉视频直播淐onsumption moderated in the third quarter, and housing market activity continues to decline,香蕉视频直播� the central bank said.

The Bank of Canada said economic data released since its October interest rate decision supports its forecast that growth will stall through the end of the year and into the first half of 2023.

At the same time, it said inflation is still too high and short-term inflation expectations remain elevated.

In October, the annual inflation rate was 6.9 per cent, well above the Bank of Canada香蕉视频直播檚 two per cent target. However, economists have noted the three-month annualized inflation rate has dropped to below four per cent, suggesting inflation is headed in the right direction.

Forecasters were split on whether the Bank of Canada would opt for a quarter or half percentage point rate hike ahead of Wednesday香蕉视频直播檚 decision. Market watchers were also unsure if the central bank would continue raising interest rates in the new year.

Western University economics professor Stephen Williamson said although the rate hike was larger than some anticipated, the bank signalling its shifting toward data-dependent decisions may be a compromise of sorts.

香蕉视频直播淚f you thought of what might be going on in the governing council, maybe this was kind of a way to compromise,香蕉视频直播� Williamson said.

The economist said the Bank of Canada is trying to judge when the right time to stop raising rates is, which is challenging because of the delay between rate hikes and their effects on the economy.

香蕉视频直播淚t香蕉视频直播檚 just kind of a matter of making a decision about when to stop and it香蕉视频直播檚 very tricky,香蕉视频直播� he said.

CIBC expects the Bank of Canada to pause its rate hikes, but to keep its key rate elevated at 4.25 per cent until 2024.

香蕉视频直播淲hile the tightening cycle likely has reached its zenith, we香蕉视频直播檒l need the pain of these higher rates to persist for a while to stall economic growth and thereby cool inflation,香蕉视频直播� said Shenfeld.

The Bank of Canada will announce its next interest rate decision on Jan. 25.

香蕉视频直播擭ojoud Al Mallees, The Canadian Press