The Bank of Canada is raising its key interest rate by half a percentage point, bringing it to 4.25 per cent and the highest it’s been since 2008.

It’s also signaling it may pause its aggressive rate hike cycle after today.

In a news release, the central bank says there’s “growing evidence” that higher interest rates are restraining demand in the economy.

At the same time, it says inflation is still too high and short-term inflation expectations remain elevated.

Looking ahead, the Bank of Canada says the governing council will be considering whether the policy interest rate needs to rise further.

Today’s rate hike marks the seventh consecutive hike since March in the wake of decades-high inflation.