The Bank of Canada hiked its key interest rate by half a percentage point to 4.25 per cent this morning, the highest its been since January 2008 while signalling it may pause its aggressive rate hike cycle.

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.

The Bank of Canada has raised its key interest rate seven consecutive times since March to clamp down on high inflation.