The Bank of Canada raised the benchmark interest rate by one percentage point on Wednesday. The surprise move is the biggest hike since 1998. The aggressive increase is larger than economists were expecting. The goal is to cool inflation, which hit 7.7 per cent in May – the highest it’s been in almost four decades.

The Globe’s Mark Rendell covers the Bank of Canada. He’s on the show to explain what the central bank is trying to accomplish with this hike, what it means for recession worries and if it will be enough to get inflation under control.

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