The Bank of Canada decided to keep its target for the overnight rate at 0.25%, in line with forecasts and to maintain its forward guidance, which sees a rise in the overnight rate sometime in the middle quarters of 2022. Until then, policymakers vowed to provide an adequate degree of monetary stimulus to support Canada’s economy and achieve the inflation target of 2%. On the price front, the ongoing supply disruptions continue to support high inflation rates but gasoline prices, which have been a major upside risk factor, have recently declined. Still, the BoC continues to expect inflation to remain elevated in the first half of 2022 and ease towards 2% in the second half of the year. Finally, recent economic indicators suggested the economy had considerable momentum in Q4, namely in the labor and housing markets, but the omicron variant of the coronavirus and the devastation left by the floods in British Columbia added to downside risks. source: Bank of Canada

Interest Rate in Canada averaged 5.80 percent from 1990 until 2021, reaching an all time high of 16 percent in February of 1991 and a record low of 0.25 percent in April of 2009. This page provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on December of 2021.

Interest Rate in Canada is expected to be 0.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Interest Rate is projected to trend around 0.75 percent in 2022 and 1.50 percent in 2023, according to our econometric models.

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Canada Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-09-08 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-10-27 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-12-08 03:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-12-09 07:00 PM BoC Gov Gravelle Speech
2021-12-15 05:00 PM BoC Gov Macklem Speech
2022-01-26 03:00 PM BoC Monetary Policy Report


Related Last Previous Unit Reference
Interest Rate 0.25 0.25 percent Dec/21
Money Supply M1 1580057.00 1580843.00 CAD Million Sep/21
Central Bank Balance Sheet 501361.00 496691.00 CAD Million Oct/21
Banks Balance Sheet 1085203.00 1076449.00 CAD Million Sep/21
Deposit Interest Rate 0.18 0.18 percent Dec/21

News Stream
Bank of Canada Leaves Monetary Policy Unchanged
The Bank of Canada decided to keep its target for the overnight rate at 0.25%, in line with forecasts and to maintain its forward guidance, which sees a rise in the overnight rate sometime in the middle quarters of 2022. Until then, policymakers vowed to provide an adequate degree of monetary stimulus to support Canada’s economy and achieve the inflation target of 2%. On the price front, the ongoing supply disruptions continue to support high inflation rates but gasoline prices, which have been a major upside risk factor, have recently declined. Still, the BoC continues to expect inflation to remain elevated in the first half of 2022 and ease towards 2% in the second half of the year. Finally, recent economic indicators suggested the economy had considerable momentum in Q4, namely in the labor and housing markets, but the omicron variant of the coronavirus and the devastation left by the floods in British Columbia added to downside risks.
2021-12-08
BoC Ends QE
The Bank of Canada decided in October to end its quantitative easing programme and move into the reinvestment phase, during which it will purchase Government of Canada bonds solely to replace maturing bonds. The central bank also kept its target for the overnight rate at 0.25%, in line with forecasts, and expects borrowing costs to remain at the current level until sometime in the middle quarters of 2022, compared to previous guidance of sometime in the second half of next year. Canada’s economy is now expected to grow at a slower 5% this year (vs 6% in the July forecasts) before moderating to 4.25% in 2022 (vs 4.6%) and 3.75% in 2023 (vs 3.3%). On the inflation front, policymakers noted that main forces pushing up prices, including higher energy prices and pandemic-related supply bottlenecks, now appear to be stronger and more persistent than expected. CPI inflation will likely remain elevated into next year, and ease back to around the 2% target by late 2022.
2021-10-27
Canada Holds Rates and QE Steady
The Bank of Canada held its target for the overnight rate at 0.25% on September 9th 2021, in line with forecasts, and maintained the quantitative easing program at a target pace of $2 billion per week, following a $1 billion cut in the previous meeting. Policymakers continue to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery. Also, the central bank judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. the bank remains committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. In the Bank’s July projection, this happens in the second half of 2022.
2021-09-08

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.