The Bank of Canada has raised its key interest rate as expected to 0.75 per cent — the central bank's first move upward in the cost of borrowing in seven years.

The bank's target for the overnight rate — at which major financial institutions make one-day loans to each other — moved up by one-quarter of a percentage point from 0.50 per cent.

The Bank of Canada hadn't increased the overnight rate since August 2010, when it nudged it up to one per cent. After Stephen Poloz took over as governor of the bank, the rate was lowered twice in 2015 to 0.5, where it remained until Wednesday.

Poloz and senior deputy governor Carolyn Wilkins will hold a media conference at 11:15 a.m. ET today to discuss the decision and outlook.

http://www.cbc.ca/news/business/bank-canada-interest-rate-monetary-policy-1.4200814