Bank of Canada raises its policy rate by 25 basis points to 2.5%

The Bank "increased its target for the overnight rate by 25 basis points to 2.5%, with the Bank Rate at 2.75% and the deposit rate at 2.45%". It sees inflation rising "to about 3½% by the end of the year". It added: "There could be a need to increase the policy rate further, but given uncertainties, Governing Council agreed to proceed carefully."