Below are the key points of the interest rate statement issued by the Bank of Canada today, Wednesday:

The Bank's Monetary Policy Committee decided to raise the interest rate by 25 basis points to 0.50%.
The bank continues the reinvestment phase, keeping its total holdings of Canadian government bonds on its balance sheet almost steady until it becomes appropriate to allow the size of its balance sheet to decline.
The unjustified invasion of Ukraine by Russia is a new major source of uncertainty.
Oil and other commodity prices have surged sharply.
This will increase inflation worldwide, and the negative effects on confidence and new supply disruptions could affect global growth.
Increased volatility in financial markets, as the situation remains volatile and we are closely monitoring events.
Global economic data generally aligned with the expectations outlined in the Bank's January Monetary Policy Report.
Economies began to emerge from the impact of the Omicron variant faster than expected.
Although the virus continues to spread and the possibility of new variants remains a concern.
Demand is strong, especially in the United States.
Global supply bottlenecks remain a challenge, although there are signs of some easing of restrictions.
Economic growth in Canada was very strong in the last quarter of last year at 6.7%. This is stronger than the Bank's expectations and confirms its view that the economic recession has been absorbed.
Both exports and imports rose, consistent with strong global demand.
In January, the recovery in the Canadian labor market suffered a setback due to the Omicron variant, with temporary layoffs in the service sectors and increased absenteeism.
However, the recovery from Omicron now appears to be proceeding well.
Household spending has proven to be resilient and should strengthen further as public health restrictions are lifted.
Housing market activity is higher, adding more pressure on home prices.
Overall, growth in the first quarter now appears stronger than previously expected.
The Consumer Price Index (CPI) inflation rate is currently 5.1%, as expected in January, and remains well above the Bank's target range.
Price increases have become more widespread, and all core inflation measures have risen.
Crop weaknesses and higher transportation costs have led to rising food prices.
The invasion of Ukraine has increased upward pressure on both energy and food-related commodity prices.
Overall, inflation is now expected to rise in the near term more than was expected in January.
Sustained high inflation increases the risk of long-term inflation expectations drifting upward.
The Bank will use its monetary policy tools to return inflation to the 2% target and to keep inflation expectations well anchored.
The interest rate is the Bank’s primary monetary policy tool.
With the economy continuing to expand and inflation pressures persisting, the Governing Council expects that interest rates will need to be raised further.
The Governing Council will also consider when to end the reinvestment phase and allow the reduction of its holdings of Canadian government bonds to begin.
The resulting quantitative tightening would complement increases in the policy interest rate.
The timing and pace of additional interest rate increases will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving its 2% inflation target.

Read more about the Bank of Canada interest rate statement March 2022 - News source: https://www.arabictrader.com/ar/news/central-banks/127326