Bank of Canada raises rate again to 4.25% — but opens door to staying there

Central bank has raised policy rate 7 times this year in battle against inflation.

In previous rate hikes, the bank made it clear that it would continue to raise its trend-setting rate until inflation came back to within the range of up to three per cent that it targets. As recently as October, the bank said it “expects that the policy interest rate will need to rise further.”

But Wednesday’s statement accompanying the rate decision was a clear departure from that tone, as the language shifted to a more neutral, wait-and-see approach.

“Looking ahead, Governing Council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target,” the bank said.