TORONTO — The loonie closed at its highest level in more than two years after the Bank of Canada raised its interest rate.

Wednesday’s surprise hike of the central bank’s overnight lending rate to 1.0 per cent comes less than a week after the latest data for economic growth showed an impressive expansion of 4.5% for Canada in the second quarter.

The loonie soared on the news, jumping more than a cent to over 82 cents US, up from Tuesday’s average price of 80.83 cents US. The dollar is now up about three per cent over the past month and up 14 per cent from its low of roughly 73 cents in April.

It’s the first time the loonie has closed above 81 cents US since June 26, 2015.

Analysts widely anticipated a second rate hike in the coming months, but the timing of Wednesday’s move came sooner than most had predicted – most experts had expected the bank to wait until its next scheduled rate announcement in late October.