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.

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Canada Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-01-26 03:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.5%
2022-03-02 03:00 PM BoC Interest Rate Decision 0.5% 0.25% 0.5% 0.5%
2022-04-13 02:00 PM BoC Interest Rate Decision 1% 0.5% 1% 1%
2022-06-01 02:00 PM BoC Interest Rate Decision 1% 1.5%
2022-07-13 02:00 PM BoC Monetary Policy Report
2022-07-13 02:00 PM BoC Interest Rate Decision


Related Last Previous Unit Reference
Interest Rate 1.00 0.50 percent Apr 2022
Money Supply M1 1648335.00 1648590.00 CAD Million Mar 2022
Central Bank Balance Sheet 483292.00 486872.00 CAD Million Apr 2022
Banks Balance Sheet 1031861.00 1031879.00 CAD Million Mar 2022
Deposit Interest Rate 1.80 1.73 percent May 2022

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.
Actual Previous Highest Lowest Dates Unit Frequency
1.00 0.50 16.00 0.25 1990 - 2022 percent Daily

News Stream
Bank of Canada Delivers 2nd Rate Hike, Ends QE
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.
2022-04-13
Bank of Canada Hikes Rates to 0.5%
The Bank of Canada increased its target for the overnight rate by 25bps to 0.5%, the first hike since October 2018, reiterating it will use its monetary policy tools to return inflation to the 2% target and keep inflation expectations well-anchored. The bank also said it is continuing its reinvestment phase, keeping overall holdings of government bonds on its balance sheet roughly constant until it becomes appropriate to allow the size of its balance sheet to decline. Inflation is now expected to be higher in the near term than projected in January, increasing the risk that longer-run inflation expectations could drift upwards. The Governing Council expects interest rates will need to rise further as the economy continues to expand and inflation pressures remain elevated. About the current war in Ukraine, the bank noted it is a major new source of uncertainty.
2022-03-02
BoC Ends Exceptional Forward Guidance
The Bank of Canada kept the target for the overnight rate at 0.25% in its first meeting of 2022, in line with forecasts, but said it has removed its exceptional forward guidance to hold its policy rate at the effective lower bound, as the overall economic slack is now absorbed, paving the way for the first rate hike since 2018. The central bank will also keep its holdings of Government of Canada bonds on its balance sheet roughly constant at least until it begins to raise the policy interest rate. On the price front, inflation is seen close to 5% in the first half of 2022 and to decline reasonably quickly to about 3% by the end of this year. The Bank expects Canada’s economy to grow by 4% in 2022 and about 3.5 % in 2023.
2022-01-26