The Bank of Canada has increased its key lending rate by another 0.25 percentage points in response to a 3.1 percent increase in Canada’s economy in the last quarter.

That brings the key lending rate to four-and-three-quarters percent.

The Bank of Canada made the hike today amid concerns that the rate of inflation “could get stuck” above the 2 percent target.

Core inflation rates have been running in the 3.5 to 4 percent range for several months.

The Bank of Canada says demand for services continued to rebound and spending on interest-sensitive goods increased, not to mention housing market activity that picked up in the first quarter of 2023.

The Bank of Canada says it remains “resolute in its commitment to restoring price stability for Canadians.”