The Bank of Canada, as expected, raised its overnight interest rate by a quarter of a percentage point to 0.75% on Wednesday. This was the first rate hike in seven years, making the Bank of Canada the first major central bank to join the Federal Reserve in raising rates. The Bank of Canada's decision was driven by its confidence in its outlook for faster growth in the economy. Shortly after the decision, the Canadian dollar rallied, with the U.S. dollar trading at C$1.2832, down 0.7% from C$1.2917 on Tuesday.
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