The Bank of Canada on Wednesday hiked a key interest rate by 75 basis points to 3.25 percent, hitting a record high since 2008, in a bid to tame spiralling inflation.

In a statement, the Bank of Canada said it is also continuing its policy of quantitative tightening, as the effects of COVID-19 outbreaks, ongoing supply disruptions, and the Russia-Ukraine conflict continue to dampen growth and boost prices.

In Canada, CPI inflation eased in July to 7.6% from 8.1% because of a drop in gasoline prices.  However, it is still remain far above its two percent inflation target.

And it signaled that further rate hikes are coming in the months ahead. 

(Cover: Pedestrians cross a road as traffic lights are out during a power outage in Toronto, Canada, August 11, 2022. /CFP)