The Bank of Canada kept its benchmark interest rate steady at 1.75 percent on January 9th 2019, as widely expected. It remained the highest rate since December 2008. Policymakers said more interest rate hikes will be needed to keep inflation into a neutral range of 2 percent target and that the pace of those hikes will depend on factors including developments in oil markets, Canadian housing market and global trade. The Bank Rate and deposit rate were also left unchanged at 2.0 percent and 1.50 percent, respectively. Interest Rate in Canada averaged 5.89 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.
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 2.50 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.