The Bank of Canada raised its target for the overnight rate by 50bps to 1% on April 13th 2022, matching market expectations. It is the second consecutive rate hike and the biggest in 20 years, pushing borrowing costs to the highest in 2 years when the coronavirus pandemic started. The central bank also announced it will end reinvestment and will begin quantitative tightening effective April 25th. Maturing Government of Canada bonds on the Bank’s balance sheet will no longer be replaced and, as a result, the size of the balance sheet will decline over time. Policymakers added that interest rates will need to rise further as the economy moves into excess demand and inflation persists well above target. Inflation in Canada is now seen averaging 6% in the first half of 2022, up from 5% forecasted in January and to remain well above the 2% target throughout the year. source: Bank of Canada
Interest Rate in Canada averaged 5.80 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 May 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.