# Bank of Canada surprises with 100bp rate hike to tame inflation

> The Bank of Canada surprised markets with a 100 basis point rate hike to fight inflation. The move lifted the Canadian dollar to about 1.2975 per US dollar, while the Canadian stock index slipped to its lowest since March 2021 before recovering.

- Date: 2022-07-13 · published 2022-07-13T12:00:00.000Z
- Category: macro · region Canada · magnitude medium
- Page: https://feedsoft.ai/events/40717-bank-of-canada-surprises-with-100bp-rate-hike-to-tame-inflation
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

A larger-than-expected rate hike strengthens the loonie and tightens financial conditions, which can weigh on Canadian demand and on dollar-denominated commodity prices.

## Read by commodity

- USDCAD: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/world/americas/bank-canada-seen-set-jumbo-75-bp-rate-hike-inflation-bites-2022-07-13/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.