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Canada has raised interest rates by 1 percentage point. Could Australia follow?
The Bank of Canada's (BoC) shock decision to raise interest rates by 1 percentage point has taken global markets and Canadian borrowers by surprise and ramped up expectations more central banks will follow with super-sized hikes. The BoC lifted its policy rate from 1.5 per cent to 2.5 per cent, the highest it has been since 2008, in a bid to arrest inflation. It is far from alone in rapidly raising interest rates. On Thursday, the Philippines central bank raised rates by 0.75 of a percentage point to 3.25 per cent in an unscheduled move, while Singapore's authorities also tightened monetary policy in a surprise move ... (full story)