Bank of Canada boosts prime interest rate

OTTAWA — The Bank of Canada has raised its target rate to 1%, up a quarter of a point, putting the bank rate at 1 ¼% and the deposit rate at 3/4%. The increase, the second in two months, comes amidst a strong Canadian economy, healthy consumer spending, and strength in exports, even as inflation stays below 2%. The housing market continues to cool, however, in response to the rate hikes and new laws on foreign ownership of real estate. The announcement caused the loonie to climb to 82 cents US.