The Bank of Canada has done as economists predicted and raised its key interest rate by half a percentage point to 1.5 per cent.
And it's warning rates will need to go even higher to rein in inflation, which was running at 6.8 per cent in April.
The central bank says global pressures, including Russia’s invasion of Ukraine, COVID-19 lockdowns in China and backlogged supply chains, are fuelling higher prices for energy and food.