The Bank of Canada raised the target for its overnight rate by 50bps to 1.5% on June 1st 2022, matching market expectations, and signaled that it will hike interest rates further in the coming meeting to curb rising inflation. It was the third consecutive rate hike, matching the magnitude of that from the Bank’s previous meeting and pushing borrowing costs to the highest level since the pandemic started. The central bank also announced it is continuing quantitative tightening measures, extending the process to run down its balance sheet. The Bank stated that it sees higher risks that the elevated inflation can become entrenched, with the economy operating in excess demand, in addition to upside risks due to uncertainty surrounding the war in Ukraine. Annual inflation in Canada rose to 6.8% in April, well above the BoC’s forecast and target of 2%, and is expected to move higher in the near term before its descent. source: Bank of Canada
Interest Rate in Canada averaged 5.79 percent from 1990 until 2022, 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 2022.
Interest Rate in Canada is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Interest Rate is projected to trend around 2.50 percent in 2023 and 2.00 percent in 2024, according to our econometric models.