Canada Interest Rate  1990-2017 | Data | Chart | Calendar | Forecast

The Bank of Canada unexpectedly raised its benchmark overnight rate by 25 bps to 1 percent at its September 6th 2017 meeting, surprising markets who expected no changes. It is the second consecutive rise in borrowing cost as recent economic data have been stronger than expected, supporting the Bank’s view that growth in Canada is becoming more broadly-based and self-sustaining. The Bank Rate was also increased by 25 bps 1.25 percent and the deposit rate by 25 bps to 0.75 percent. Interest Rate in Canada averaged 5.92 percent from 1990 until 2017, reaching an all time high of 16 percent in February of 1991 and a record low of 0.25 percent in April of 2009.

Canada Interest Rate
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Canada Unexpectedly Hikes the Key Rate to 1.0%


The Bank of Canada unexpectedly raised its benchmark overnight rate by 25 bps to 1 percent at its September 6th 2017 meeting, surprising markets who expected no changes. It is the second consecutive rise in borrowing cost as recent economic data have been stronger than expected, supporting the Bank’s view that growth in Canada is becoming more broadly-based and self-sustaining. The Bank Rate was also increased by 25 bps 1.25 percent and the deposit rate by 25 bps to 0.75 percent.


Statement by the Bank of Canada:

Recent economic data have been stronger than expected, supporting the Bank’s view that growth in Canada is becoming more broadly-based and self-sustaining. Consumer spending remains robust, underpinned by continued solid employment and income growth. There has also been more widespread strength in business investment and in exports. Meanwhile, the housing sector appears to be cooling in some markets in response to recent changes in tax and housing finance policies. The Bank continues to expect a moderation in the pace of economic growth in the secondhalf of 2017, for the reasons described in the July Monetary Policy Report (MPR), but the level of GDP is now higher than the Bank had expected.

The global economic expansion is becoming more synchronous, as anticipated in July, with stronger-than-expected indicators of growth, including higher industrial commodity prices. However, significant geopolitical risks and uncertainties around international trade and fiscal policies remain, leading to a weaker US dollar against many major currencies. In this context, the Canadian dollar has appreciated, also reflecting the relative strength of Canada’s economy.

Given the stronger-than-expected economic performance, Governing Council judges that today’s removal of some of the considerable monetary policy stimulus in place is warranted. Future monetary policy decisions are not predetermined and will be guided by incoming economic data and financial market developments as they inform the outlook for inflation. Particular focus will be given to the evolution of the economy’s potential, and to labour market conditions. Furthermore, given elevated household indebtedness, close attention will be paid to the sensitivityof the economy to higher interest rates. 


Bank of Canada |Luisa Carvalho | luisa.carvalho@tradingeconomics.com
9/6/2017 2:42:25 PM



Calendar GMT Actual Previous Consensus TEForecast
2017-05-24 02:00 PM BoC Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2017-07-12 02:00 PM BoC Interest Rate Decision 0.75% 0.5% 0.75% 0.75%
2017-09-06 02:00 PM BoC Interest Rate Decision 1.00% 0.75% 0.75% 0.75%
2017-10-25 02:00 PM BoC Monetary Policy Report
2017-10-25 02:00 PM BoC Interest Rate Decision 1.00% 1%
2017-12-06 03:00 PM BoC Interest Rate Decision 1.25%


Canada Money Last Previous Highest Lowest Unit
Interest Rate 1.00 0.75 16.00 0.25 percent [+]
Interbank Rate 1.42 1.43 8.95 0.43 percent [+]
Money Supply M0 88188.00 88130.00 88188.00 2214.00 CAD Million [+]
Money Supply M1 943426.00 944352.00 944780.00 30706.00 CAD Million [+]
Money Supply M2 1551794.00 1552864.00 1557431.00 25523.00 CAD Million [+]
Money Supply M3 2287313.00 2285644.00 2308350.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 109016.00 109937.00 111005.00 2226.00 CAD Million [+]
Banks Balance Sheet 5210714.00 5276025.00 5276025.00 10516.00 CAD Million [+]
Foreign Exchange Reserves 84339.00 85103.00 85589.00 1678.00 USD Million [+]
Loans to Private Sector 362445.00 363988.00 363988.00 10928.00 CAD Million [+]
Deposit Interest Rate 0.10 0.10 15.96 0.05 percent [+]
Foreign Stock Investment 9850.00 23970.00 39177.00 -24129.00 CAD Million [+]
Private Debt to GDP 266.89 257.84 266.89 177.36 percent [+]


Canada Interest Rate

In Canada, benchmark interest rate is set by the Bank of Canada's (BoC) Governing Council. The official interest rate is the Overnight Rate. Since 1996 the Bank Rate is set at the upper limit of an operating band for the money market overnight rate. Previously, from March 1980 until February 1996 the Bank Rate was set at 25 basis points above the weekly average tender rate for 3-month Treasury bills. This page provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Interest Rate - actual data, historical chart and calendar of releases - was last updated on October of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
1.00 0.75 16.00 0.25 1990 - 2017 percent Daily




interest rate by Country

Last
Russia 8.50 Sep/17
Brazil 8.25 Sep/17
Turkey 8.00 Sep/17
Mexico 7.00 Sep/17
India 6.00 Oct/17
China 4.35 Sep/17
Indonesia 4.25 Sep/17
Australia 1.50 Oct/17
South Korea 1.25 Sep/17
United States 1.25 Sep/17
Canada 1.00 Sep/17
United Kingdom 0.25 Sep/17
Euro Area 0.00 Sep/17
France 0.00 Sep/17
Germany 0.00 Sep/17
Italy 0.00 Sep/17
Netherlands 0.00 Sep/17
Spain 0.00 Sep/17
Japan -0.10 Sep/17
Switzerland -0.75 Sep/17