Bank of Canada hikes key interest rate to 1.25%

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Bank notes 'uncertainty about the future of NAFTA' as it hikes rate for 3rd time since last summer
The Bank of Canada raised its key lending rate by a quarter percentage point to 1.25 per cent Wednesday, the third time it has moved its benchmark rate from once-record lows last summer.

The bank's rate has an impact on rates that Canadians get from retail banks for things like mortgages, savings accounts and GICs. The move means borrowers can expect to pay more, but savers can expect to earn more, too.
 
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The bank's benchmark rate is now at its highest level since 2009.

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