● BANK OF CANADA HIKES RATES FIRST TIME SINCE 2023

The Bank of Canada raised its overnight rate by 25 basis points to 2.5%, its first increase since 2023 and a sharp reversal after years of cuts. Governor Tiff Macklem said the move was needed to stop persistently high energy prices from spreading into broader inflation. The Bank's statement flagged that CPI inflation has run near 3% since April and is expected to climb toward 3.5% by year end. The hike puts Canada out of step with a global cycle still tilted toward rate cuts, and traders are watching $USDCAD for the next move.