BOC Hiked Rate by +25 bps, Reduced Growth Forecasts

The Bank of Canada raised the overnight rate by another +25 bps to 0.75% in July. The central bank also raised the bank rate and discount rate by +25 bps to 1% and 0.50%, respectively. Concerning economic outlook, the BOC revised down slightly 2010 and 2011 forecasts but 2012 outlook was upgraded.