Canada Interest Rate  1990-2018 | Data | Chart | Calendar | Forecast

The Bank of Canada hiked its overnight rate by 25bps to 1.25 percent on January 17th 2018, in line with market expectations. Policymakers said that recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity but noticed that uncertainty surrounding the future of NAFTA is clouding the economic outlook. The Bank Rate is correspondingly 1.5 percent and the deposit rate is 1 percent. Interest Rate in Canada averaged 5.91 percent from 1990 until 2018, 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 Raises Key Rate to 1.25%


The Bank of Canada hiked its overnight rate by 25bps to 1.25 percent on January 17th 2018, in line with market expectations. Policymakers said that recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity but noticed that uncertainty surrounding the future of NAFTA is clouding the economic outlook. The Bank Rate is correspondingly 1.5 percent and the deposit rate is 1 percent.

Statement by the Bank of Canada:

The global economy continues to strengthen, with growth expected to average 3 1/2 per cent over the projection horizon. Growth in advanced economies is projected to be stronger than in the Bank’s October Monetary Policy Report (MPR). In particular, there are signs of increasing momentum in the US economy, which will be boosted further by recent tax changes. Global commodity prices are higher, although the benefits to Canada are being diluted by wider spreads between benchmark world and Canadian oil prices.

In Canada, real GDP growth is expected to slow to 2.2 per cent in 2018 and 1.6 per cent in 2019, following an estimated 3.0 per cent in 2017. Growth is expected to remain above potential through the first quarter of 2018 and then slow to a rate close to potential for the rest of the projection horizon.

Consumption and residential investment have been stronger than anticipated, reflecting strong employment growth. Business investment has been increasing at a solid pace, and investment intentions remain positive. Exports have been weaker than expected although, apart from cross-border shifts in automotive production, there have been positive signs in most other categories.

Looking forward, consumption and residential investment are expected to contribute less to growth, given higher interest rates and new mortgage guidelines, while business investment and exports are expected to contribute more. The Bank’s outlook takes into account a small benefit to Canada’s economy from stronger US demand arising from recent tax changes. However, as uncertainty about the future of NAFTA is weighing increasingly on the outlook, the Bank has incorporated into its projection additional negative judgement on business investment and trade.

The Bank continues to monitor the extent to which strong demand is boosting potential, creating room for more non-inflationary expansion. In this respect, capital investment, firm creation, labour force participation, and hours worked are all showing promising signs. Recent data show that labour market slack is being absorbed more quickly than anticipated. Wages have picked up but are rising by less than would be typical in the absence of labour market slack.

In this context, inflation is close to 2 per cent and core measures of inflation have edged up, consistent with diminishing slack in the economy. The Bank expects CPI inflation to fluctuate in the months ahead as various temporary factors (including gasoline and electricity prices) unwind. Looking through these temporary factors, inflation is expected to remain close to 2 per cent over the projection horizon.

While the economic outlook is expected to warrant higher interest rates over time, some continued monetary policy accommodation will likely be needed to keep the economy operating close to potential and inflation on target. Governing Council will remain cautious in considering future policy adjustments, guided by incoming data in assessing the economy’s sensitivity to interest rates, the evolution of economic capacity, and the dynamics of both wage growth and inflation.


BoC | Joana Taborda | joana.taborda@tradingeconomics.com
1/17/2018 3:04:07 PM



Calendar GMT Actual Previous Consensus TEForecast
2017-10-25 02:00 PM BoC Interest Rate Decision 1.00% 1% 1% 1%
2017-12-06 03:00 PM BoC Interest Rate Decision 1.00% 1% 1% 1%
2018-01-17 03:00 PM BoC Interest Rate Decision 1.25% 1% 1.25% 1.25%
2018-03-07 03:00 PM BoC Interest Rate Decision 1.25% 1.25%
2018-04-18 02:00 PM BoC Interest Rate Decision
2018-04-18 02:00 PM BoC Monetary Policy Report


Canada Money Last Previous Highest Lowest Unit
Interest Rate 1.25 1.00 16.00 0.25 percent [+]
Interbank Rate 1.66 1.66 8.95 0.43 percent [+]
Money Supply M0 89142.00 88945.00 89142.00 2214.00 CAD Million [+]
Money Supply M1 965358.00 954241.00 965358.00 30706.00 CAD Million [+]
Money Supply M2 1589083.00 1574398.00 1589083.00 25523.00 CAD Million [+]
Money Supply M3 2353068.00 2272184.00 2353068.00 37982.00 CAD Million [+]
Banks Balance Sheet 5459544.00 5319307.00 5459544.00 10516.00 CAD Million [+]
Central Bank Balance Sheet 109564.00 110441.00 111005.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 86748.00 86625.00 86805.00 1678.00 USD Million [+]
Loans to Private Sector 376442.00 374172.00 376442.00 10904.00 CAD Million [+]
Deposit Interest Rate 0.10 0.10 15.96 0.05 percent [+]
Foreign Stock Investment -1970.00 19200.00 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 February of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.25 1.00 16.00 0.25 1990 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 8.00 Jan/18
Mexico 7.50 Feb/18
Russia 7.50 Feb/18
Brazil 6.75 Feb/18
India 6.00 Feb/18
China 4.35 Jan/18
Indonesia 4.25 Feb/18
Australia 1.50 Feb/18
South Korea 1.50 Jan/18
United States 1.50 Jan/18
Canada 1.25 Jan/18
United Kingdom 0.50 Feb/18
Euro Area 0.00 Jan/18
France 0.00 Jan/18
Germany 0.00 Jan/18
Italy 0.00 Jan/18
Netherlands 0.00 Jan/18
Spain 0.00 Jan/18
Japan -0.10 Jan/18
Switzerland -0.75 Jan/18


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