The Bank of Canada raised its key interest rate for the first time in nearly seven years, responding to what it sees as “above-potential” economic growth, AFP reported. The bank lifted the key overnight rate by a quarter point, from 0.50% to 0.75%, the first such move since September 2010. Analysts had expected an increase even though inflation stood only at 1.3% in May. “The bank acknowledges recent softness in inflation but judges this to be temporary,” it said, adding that it considers the timing of the rate hike “appropriate”. “Canada’s economy has been robust, fuelled by household spending. As a result, a significant amount of economic slack has been absorbed,” the bank said.