The Bank of Canada held its benchmark interest rate at 1.75 percent on April 24th 2019, as widely expected. It remained the highest rate since December 2008. Policymakers said that an accommodative policy interest rate continues to be warranted. The Committee added that they will be evaluating the appropriate degree of monetary policy accommodation depending on developments, which include household spending, oil markets, and global trade policy. The Bank Rate and deposit rate were also left unchanged at 2.0 percent and 1.50 percent, respectively. Interest Rate in Canada averaged 5.88 percent from 1990 until 2019, reaching an all time high of 16 percent in February of 1991 and a record low of 0.25 percent in April of 2009.

Interest Rate in Canada is expected to be 1.75 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 2.00 in 12 months time. In the long-term, the Canada Interest Rate is projected to trend around 2.75 percent in 2020, according to our econometric models.

Canada Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-12-05 03:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-01-09 03:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-03-06 03:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-04-24 02:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-05-29 02:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75%
2019-05-30 06:15 PM BoC Wilkins Speech
2019-06-28 02:30 PM BoC Business Outlook Survey



Canada Holds Interest Rate at 1.75%

The Bank of Canada held its benchmark interest rate at 1.75 percent on April 24th 2019, as widely expected. It remained the highest rate since December 2008. Policymakers said that an accommodative policy interest rate continues to be warranted. The Committee added that they will be evaluating the appropriate degree of monetary policy accommodation depending on developments, which include household spending, oil markets, and global trade policy. The Bank Rate and deposit rate were also left unchanged at 2.0 percent and 1.50 percent, respectively.

Statement by the Bank of Canada:

Global economic growth has slowed by more than the Bank forecast in its January Monetary Policy Report (MPR). Ongoing uncertainty related to trade conflicts has undermined business sentiment and activity, contributing to a synchronous slowdown across many countries. In response, many central banks have signalled a slower pace of monetary policy normalization. Financial conditions and market sentiment have improved as a result, pushing up prices for oil and other commodities. 

Global economic activity is expected to pick up during 2019 and average 3 ¼ per cent over the projection period, supported by accommodative financial conditions and as a number of temporary factors weighing on growth fade. This is roughly in line with the global economy’s potential and a modest downgrade to the Bank’s January projection.

In Canada, growth during the first half of 2019 is now expected to be slower than was anticipated in January. Last year’s oil price decline and ongoing transportation constraints have curbed investment and exports in the energy sector. Investment and exports outside the energy sector, meanwhile, have been negatively affected by trade policy uncertainty and the global slowdown. Weaker-than-anticipated housing and consumption also contributed to slower growth.

The Bank expects growth to pick up, starting in the second quarter of this year. Housing activity is expected to stabilize given continued population gains, the fading effects of past housing policy changes, and improved global financial conditions. Consumption will be underpinned by strong growth in employment income. Outside of the oil and gas sector, investment will be supported by high rates of capacity utilization and exports will expand with strengthening global demand.  Meanwhile, the contribution to growth from government spending has been revised down in light of Ontario’s new budget.

Overall, the Bank projects real GDP growth of 1.2 per cent in 2019 and around 2 per cent in 2020 and 2021. This forecast implies a modest widening of the output gap, which will be absorbed over the projection period.

CPI and measures of core inflation are all close to 2 per cent. CPI inflation will likely dip in the third quarter, largely because of the dynamics of gasoline prices, before returning to about 2 per cent by year end. Taking into account the effects of the new carbon pollution charge, as well as modest excess capacity, the Bank expects inflation to remain around 2 per cent through 2020 and 2021.

Given all of these developments, Governing Council judges that an accommodative policy interest rate continues to be warranted. We will continue to evaluate the appropriate degree of monetary policy accommodation as new data arrive. In particular, we are monitoring developments in household spending, oil markets, and global trade policy to gauge the extent to which the factors weighing on growth and the inflation outlook are dissipating.


BoC | Stefanie Moya | stefanie.moya@tradingeconomics.com
4/24/2019 2:03:17 PM



Canada Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 16.00 0.25 percent [+]
Money Supply M0 94402.00 94101.00 94402.00 2214.00 CAD Million [+]
Money Supply M1 1004583.00 1001502.00 1008129.00 30706.00 CAD Million [+]
Interbank Rate 2.02 2.02 8.95 0.43 percent [+]
Money Supply M2 1687745.00 1680339.00 1687745.00 25523.00 CAD Million [+]
Money Supply M3 2470544.00 2438126.00 2470544.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 116111.00 114373.00 116111.00 2110.00 CAD Million [+]
Banks Balance Sheet 6011523.00 5900023.00 6082930.00 10516.00 CAD Million [+]
Foreign Exchange Reserves 84832.00 83416.00 87872.00 1678.00 USD Million [+]
Loans to Private Sector 442354.00 431113.00 442354.00 10904.00 CAD Million [+]
Deposit Interest Rate 1.81 1.81 22.06 0.10 percent [+]
Foreign Stock Investment -1488.00 12394.00 38935.00 -24129.00 CAD Million [+]
Private Debt to GDP 266.61 264.66 266.61 175.61 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 May of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 16.00 0.25 1990 - 2019 percent Daily




Country Last Previous
Argentina 71.22 May/19
Turkey 24.00 Apr/19
Mexico 8.25 May/19
Russia 7.75 Apr/19
South Africa 6.75 May/19
Brazil 6.50 May/19
India 6.00 Apr/19
Indonesia 6.00 May/19
China 4.35 Apr/19
Saudi Arabia 3.00 Apr/19
United States 2.50 May/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 May/19
United Kingdom 0.75 May/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Apr/19


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