Bank of Canada surprises with 100-bp rate hike as inflation risks gather steam

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OTTAWA, July 13 (Reuters)- The Bank of Canada surprised on Wednesday with a full-percentage-point increase to its policy rate, a super-sized hike last seen in 1998, citing “higher and more persistent” inflation and the increased risk of those price gains becoming entrenched. The central bank, in a regular rate decision, raised its policy rate to 2.5% from 1.5%, and said more hikes would be needed. The move was more forceful than the 75-basis point increase economists and money markets had forecast. “With the economy clearly in excess demand, inflation high and broadening, and more businesses a…

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