Bank of Canada (BoC) raises rates by 0.25%. First increase since July 2023. This directly affects variable-rate borrowing, including mortgages and lines of credit. For example, $50K line of credit would be about +$10 per month in interest. Sample $500K variable rate mortgage at 25 yr amortization would be about +$70/m.
Fixed mortgage rates are different, as they follow bond yields and market expectations.

According to BoC, the economy has held up better than expected, but inflation is proving more persistent. They are concerned continuing high energy prices may spread broadly to the prices of other goods and services.
In their words: “There could be a need to increase the policy rate further, but given uncertainties, Governing Council agreed to proceed carefully.”

Translation:
This is a preventive move. The Bank is trying to get ahead of inflation before it spreads more broadly.
Historically, rate hikes tend to come in cycles, and markets are already anticipating further increases. But the BoC isn’t committing to a series of hikes. Their message remains cautious, with considerable uncertainty around oil prices and Canada-US trade relations.

Next announcement: December 9, for both the Bank of Canada and US Fed. (The US has made one hike so far, followed by a pause today. Markets anticipate further increases.)