Bank Rate Raised to 4 1/2 Per Cent

The Bank of Canada today raised its Bank rate by ½ of one percentage point to 4 ½ per cent. The Bank's operating band for the overnight rate was similarly adjusted.

Volatility in international financial markets, tied to events in Asia, has continued to affect Canadian markets. This action by the Bank is designed to contribute to more settled domestic markets in which investors can focus more confidently on the strong fundamentals favouring non-inflationary growth in the Canadian economy.