The Bank of Canada kept its benchmark interest rate steady at the effective lower bound of 0.25 percent on June 3rd 2020, as widely expected. Policymakers noted that the covid-19 pandemic hit output and employment, but fiscal actions combined with lower interest rates are helping economic recovery. The Committee reduced the frequency of its term repo operations to once per week, and its program to purchase bankers’ acceptances to bi-weekly operations and said that it is ready to adjust these programs if market conditions warrant. Meanwhile, other programs to purchase federal, provincial, and corporate debt are continuing at their present frequency and scope. The Committee maintained its commitment to continue large-scale asset purchases until the economic recovery is well underway. Policymakers added that they will take any further action if necessary to achieve the inflation target. The Bank Rate and the deposit rate were also left unchanged at 0.5% and 0.25%, respectively.
Interest Rate in Canada averaged 5.86 percent from 1990 until 2020, 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 June of 2020. source: Bank of Canada
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. Looking forward, we estimate Interest Rate in Canada to stand at 0.25 in 12 months time. In the long-term, the Canada Interest Rate is projected to trend around 0.75 percent in 2021 and 1.25 percent in 2022, according to our econometric models.