The Bank of Canada just announced an increase in the overnight lending rate by .25%. This will result in a corresponding rise in most lenders' Prime rates. This announcement doesn't come as a complete surprise given the ongoing challenge of curbing inflation.

As inflation continues to pose a significant concern, the Bank of Canada has taken this step to address the situation. This adjustment may have an impact on variable-rate mortgages, lines of credit, and other related financial products. Variable rate holders will now see their prime rate increase to 6.95% the highest rate since April 2001.