The Bank of Canada, which in January paused a series of interest rate hikes, resumed its monetary tightening with a 25-basis-point increase on Wednesday.
The move surprised economic analysts, who expected the rate hike pause to continue. It also signaled a continued willingness by Canada's central bank to chart a different course than the Federal Reserve, which is widely reported to be considering a pause in rate hikes at its meeting later this month.
BOC cited an overheating economy and persistent inflation as primary reasons for the course correction, which raises the overnight lending rate to 4.75%, its highest level in Canada since April 2001.
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