(Pexels)

Loonie soars as interest rates rise

The Bank of Canada hiked the interest rate for the first time in 7 years on Wednesday.

The Canadian dollar soared this morning after the Bank of Canada announced it was hiking its key lending rate.

The loonie was up 0.67 of a U.S. cent at 78.06 cents US about an hour after the central bank’s decision. The last time the dollar closed above 78 cents US was in August 2016.

The Bank of Canada says it’s raising its benchmark interest rate by a quarter of a percentage point to 0.75 per cent — its first increase in nearly seven years.

It had slashed its interest rates in 2015 to help the economy deal with a plunge in oil prices that began in late 2014. The bank’s governor has said recently that those rate cuts have done their job.

Canada’s dollar has been rising for weeks amid growing expectations that the rate would be raised. Its gain was was also helped on Wednesday by higher oil and gold prices.

Just Posted

UPDATE: 10-20 cm of snow expected Friday in Lower Mainland

Snowfall warning in effect from North Shore mountains out to Hope

VIDEO: Flames consume small building at Langley Events Centre

Thursday afternoon demo shows the importance of having sprinklers installed

Langley program helps youth find their employment niche

The first session of Skills to Success youth employment program wrapped up and a second has started.

Charges laid in 2016 Mission crash that killed Langley teenager

Lidia Ramos died when the car she was riding in slipped off a logging road in heavy rain

Two Langley fire trucks collide on black ice

The fire trucks were being used to block vehicles from icy hill when they started sliding

B.C. Games open with Olympic touch

The 2018 B.C. Winter Games kicked off in Kamloops

Suspected serial killer targeting Toronto gay community now faces six murder charges

Bruce McArthur now charged with murders of six men: Toronto police

Trump suggests more guns in schools to combat shootings

Trump floats two-step plan for gun control: More guns, more control

Second Russian athlete tests positive for doping at Olympics

Russian Bobsled Federation states a drug-test sample that pilot Nadezhda Sergeeva gave on Sunday was positive.

Indigenous leaders call for change after ‘system fails’ Tina Fontaine

‘All of us should be ashamed’: Calls for change after jury finds Raymond Cormier not guilty

Atwal fiasco dogs Trudeau; PM pledges a ‘conversation’ with MP responsible

Trudeau is being peppered with questions about the lingering controversy

Germany upsets Canada in Olympic men’s hockey

Germany 4 Canada 3; Germans play OAR for gold; Canada and Czechs go for bronze

B.C. ski cross racer wins Olympic gold

Kelowna’s Kelsey Serwa wins the gold medal in thrilling fashion in PyeongChang

Evacuated cat finds his way home seven months after B.C. wildfires

‘He just decided he was going on a holiday — an extended holiday’

Most Read