The Bank of Canada left its benchmark interest rate unchanged at 0.25 percent on April 15th 2020, as widely expected. Policymakers said that they had taken measures aiming to help restore confidence and stimulate spending by consumers and businesses amid the coronavirus pandemic. The Committee added that they will continue to purchase at least CAD 5 billion in Government of Canada securities per week in the secondary market; they will increase the level of purchases as required to maintain proper functioning of the government bond market and they will temporarily raise the amount of Treasury Bills it acquires. Policymakers also announced a new Provincial Bond Purchase Program of up to CAD 50 billion; and a Corporate Bond Purchase Program, in which the Bank will acquire up to a total of CAD 10 billion in investment grade corporate bonds in the secondary market. The Bank is also enhancing its term repo facility to permit funding for up to 24 months.

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.

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Canada Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 16.00 0.25 1990 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-03-04 03:00 PM BoC Interest Rate Decision 1.25% 1.75% 1.75% 1.5%
2020-03-13 06:30 PM BoC Interest Rate Decision 0.75% 1.25%
2020-03-27 01:00 PM Interest Rate Decision 0.25% 0.75%
2020-04-15 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-06-03 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25%
2020-07-06 02:30 PM BoC Business Outlook Survey
2020-07-15 02:00 PM BoC Monetary Policy Report
2020-07-15 02:00 PM BoC Interest Rate Decision 0.25%


News Stream
Canada Holds Interest Rate, Unveils Market Operations
The Bank of Canada left its benchmark interest rate unchanged at 0.25 percent on April 15th 2020, as widely expected. Policymakers said that they had taken measures aiming to help restore confidence and stimulate spending by consumers and businesses amid the coronavirus pandemic. The Committee added that they will continue to purchase at least CAD 5 billion in Government of Canada securities per week in the secondary market; they will increase the level of purchases as required to maintain proper functioning of the government bond market and they will temporarily raise the amount of Treasury Bills it acquires. Policymakers also announced a new Provincial Bond Purchase Program of up to CAD 50 billion; and a Corporate Bond Purchase Program, in which the Bank will acquire up to a total of CAD 10 billion in investment grade corporate bonds in the secondary market. The Bank is also enhancing its term repo facility to permit funding for up to 24 months.
2020-04-15
Canada Cuts Interest Rate to 0.25% in Emergency Move
The Bank of Canada slashed its benchmark interest rate by 50bps to 0.25 percent in an emergency meeting on March 27th 2020. The move follows a similar margin cut on March 13th and brings borrowing costs to its effective lower bound aiming to support the economy and the financial system amid the coronavirus pandemic. The Committee also launched a Commercial Paper Purchase Program to help to restore a key source of short-term funding for businesses and said that will begin acquiring government securities in the secondary market until the economy recovers. Policymakers added that they are closely monitoring economic and financial conditions, in coordination with other G7 central banks and fiscal authorities and will take further action if necessary.
2020-03-27
Bank of Canada Cuts Rates Unexpectedly
The Bank of Canada lowered its benchmark interest rate by 50 bps to 0.75 percent at a surprise meeting on March 13th. It follows a cut by a similar margin last week and brings borrowing costs to its lowest level since August 2017. The central bank said the unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada’s economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices. Policymakers added the spread of the coronavirus is having serious consequences for Canadian families, and for Canada’s economy; and lower prices for oil will weigh heavily on the economy, particularly in energy intensive regions. The Bank Rate and deposit rate were also cut by 50bps to 1% and 0.5%, respectively.
2020-03-13
Canada Cut Interest Rate by 50Bps for 1st time since 2009
The Bank of Canada cut its benchmark interest rate by 50 bps to 1.25 percent on March 4th 2020, bringing borrowing costs to the lowest since June 2018. It is the first time since March 2009 that the central bank slash rates by 50bps, following US Fed’s decision to lower rates by the same margin. Policymakers said that the economy has been operating close to its potential with inflation on target, but noted that the coronavirus outbreak is a material negative shock to the economy. The Committee added that the first quarter of the year will be weaker than expected, as business investment does not recover and amid rail line blockades, strikes by Ontario teachers, and winter storms in some regions. Policymakers said that they will continue to monitor developments, in coordination with other G7 central banks and fiscal authorities, and will adjust monetary policy further if necessary. The Bank Rate and deposit rate were also cut by 50bps to 1.5% and 1%, respectively.
2020-03-04

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.