The Bank of Canada left its benchmark interest rate unchanged at the effective lower bound of 0.25 percent on October 28th 2020, as widely expected. The Committee said it is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing program. The Bank added that it is recalibrating the QE program to shift purchases towards longer-term bonds, and that total purchases will be gradually reduced to at least CAD 4 billion a week. Policymakers projected an economic contraction of about 5.5% in 2020, to then grow by almost 4% on average in 2021 and 2022, a slower pace than previously forecast. The Committee said growth will likely be choppy as domestic demand is influenced by the evolution of the virus and its impact on consumer and business confidence. Policymakers added that they will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. source: Bank of Canada
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 October of 2020.
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 0.25 percent in 2021 and 0.50 percent in 2022, according to our econometric models.