The Bank of Canada announced on Wednesday that it is raising the key interest rate by 0.75%, which aligns with expectations set forth by economists. The move brings the bank’s key rate up to 3.25%.

In announcing the rate hike, the Bank of Canada stated that global inflation remains high while the Canadian economy continues to operate in “excess demand.”

The move comes as Canada’s year-over-year inflation stands at a high 7.6% in July, slightly down from 8.1% in June following the slight dip in gas prices.

The bank said that its core measures of inflation, which are less volatile, continue to move up and the short-term inflation expectations remain high, the Canadian Press reported.

Due to its prediction, the central bank stated that rates will need to rise further to bring inflation down to its 2% target.