THINK OUTSIDE THE BOX:  The Bank of Canada has raised its overnight target rate by a half-point, bringing it to 1.50%.

This is the Bank’s second consecutive 50-bps rate hike and was fully expected by markets.

In its statement accompanying the decision, the Bank said, “The risk of elevated inflation becoming entrenched has risen. The Bank will use its monetary policy tools to return inflation to target and keep inflation expectations well anchored.”

As a result, the Bank said interest rates “will need to rise further.”

Banks and other financial institutions are expected to raise their prime rate in the coming days, which will increase rates for variable-rate mortgage holders.  Read Full Statement Here