Bank of Canada raises interest rate again — but hints that hikes may be done for now

The Bank of Canada has raised its benchmark interest rate again, to 4.5 per cent.

The move was widely expected by economists as the bank tries to wrestle record-high inflation into submission.

It's the eighth time in less than a year that the bank has hiked its trend-setting rate, a move that will make borrowing money more expensive.

But at one quarter of a percentage point, it's also the smallest hike since March, and thus a sign that the bank may be done with hiking rates for the next little while. 

The bank said as much in a statement accompanying its decision, noting that "if economic developments evolve broadly in line with outlook, [the bank] expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases."

The bank also gave itself a sliver of wiggle room, however, to raise rates even more if inflation persists. "The governing council is prepared to increase the policy rate further if needed to return inflation to the 2 per cent target," the bank said.

Officials at the central bank will have more to say about their line of thinking at a press conference that begins at 11 a.m. ET.