Canada Interest Rate  1990-2016 | Data | Chart | Calendar | Forecast

The Bank of Canada left its benchmark overnight rate unchanged at 0.5 percent at its April 13th, 2016 meeting as widely expected, saying the inflation risks are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy. Also, the GDP growth forecast for 2016 was revised up to 1.7 percent from 1.4 percent previously. The Bank Rate was also left on hold at 3/4 percent and the deposit rate at 1/4 percent. Interest Rate in Canada averaged 5.96 percent from 1990 until 2016, 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 reported by the Bank of Canada.

Canada Interest Rate
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Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.50 16.00 0.25 1990 - 2016 percent Daily
In Canada, benchmark interest rate is set by the Bank of Canada's (BoC) Governing Council. The official interest rate is the Bank 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. This page provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Interest Rate - actual data, historical chart and calendar of releases - was last updated on May of 2016.


Calendar GMT Reference Actual Previous Consensus Forecast (i)
2016-01-20 03:00 PM BoC Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2016-03-09 03:00 PM BoC Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2016-04-13 02:00 PM BoC Interest Rate Decision 0.5% 0.5% 0.50% 0.5%
2016-05-03 04:30 PM BoC Gov Poloz Speech
2016-05-06 03:00 PM BoC Deputy Gov Schembri Speech
2016-05-25 02:00 PM BoC Interest Rate Decision 0.5% 0.25%

Canada Holds Key Rate at 0.5%


The Bank of Canada left its benchmark overnight rate unchanged at 0.5 percent at its April 13th, 2016 meeting as widely expected, saying the inflation risks are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy. Also, the GDP growth forecast for 2016 was revised up to 1.7 percent from 1.4 percent previously. The Bank Rate was also left on hold at 3/4 percent and the deposit rate at 1/4 percent.

Statement by the Bank of Canada:

Growth in the global economy is expected to strengthen gradually from about 3 percent in 2016 to 3 1/2 percent in 2017-18, a weaker outlook than the Bank had projected in its January Monetary Policy Report (MPR). After a slow start to 2016, the US economy is expected to regain momentum, but with a lower profile and a composition that is less favourable for Canadian exports. Financial conditions have improved, partly in response to expectations of more accommodative monetary policy in some major economies.

Prices of oil and other commodities are off their earlier lows and slightly above levels assumed by the Bank in January, but remain well below historical averages. Nonetheless, the Bank expects deeper cuts to investment in Canada’s energy sector than were forecast in January. Meanwhile, the Canadian dollar has firmed, reflecting shifting expectations for monetary policy in Canada and the United States, as well as recent increases in commodity prices.

The Canadian economy’s complex structural adjustment to the oil price shock is ongoing and will dampen growth throughout the Bank’s projection horizon. First-quarter GDP growth appears to have been unexpectedly strong, but some of that strength is due to temporary factors and is likely to reverse in the second quarter. Still, it does appear that the positive forces at work in the economy are starting to outweigh those that are negative. Non-resource exports are expected to strengthen, but their profile is weaker than previously projected, in part because of slower foreign demand growth and the higher Canadian dollar. The economy continues to create net new employment, especially in services, despite job losses in resource-intensive regions. In this context, household spending continues to expand moderately. While business investment is still shrinking due to sizeable declines in the energy sector, it is expected to turn positive later this year. The complex adjustment figures importantly in the Bank’s annual review of the economy’s potential, which has resulted in a lower estimated range for potential output growth.

The combined effect of all of these global and domestic developments would have been a modest downgrade of the Bank’s outlook. However, the fiscal measures announced in the March federal budget will have a notable positive impact on GDP. The Bank now projects real GDP growth of 1.7 percent in 2016, 2.3 percent in 2017 and 2.0 per cent in 2018. This new growth profile, combined with the revised estimate for potential, suggests the output gap could close somewhat earlier than the Bank had anticipated in January, likely in the second half of 2017.

Inflation in Canada continues to track largely as the Bank anticipated. Total CPI inflation is below the 2 percent target and will likely ease further before returning to 2 percent as the effects of exchange rate pass-through and lower consumer energy prices unwind and the economy’s excess capacity diminishes. Measures of core inflation are close to 2 per cent and continue to reflect the offsetting influences of past exchange rate depreciation and excess capacity.

Overall, the risks to the profile for inflation are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy. The Bank’s Governing Council judges that the overall balance of risks remains within the zone for which the current stance of monetary policy is appropriate, and the target for the overnight rate remains at 1/2 per cent.

Bank of Canada | Yekaterina Guchshina | yekaterina@tradingeconomics.com
4/13/2016 3:16:05 PM

Canada Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 16.00 0.25 percent [+]
Interbank Rate 0.94 0.93 8.95 0.43 percent [+]
Money Supply M0 80709.00 80151.00 80709.00 2214.00 CAD Million [+]
Money Supply M1 830792.00 829538.00 830792.00 30706.00 CAD Million [+]
Money Supply M2 1402387.00 1398660.00 1402387.00 25523.00 CAD Million [+]
Money Supply M3 2097851.00 2104210.00 2104210.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 99020.00 98203.00 100391.00 2226.00 CAD Million [+]
Banks Balance Sheet 5049068.00 5050451.00 5050451.00 10516.00 CAD Million [+]
Foreign Exchange Reserves 82192.00 81290.00 82192.00 1678.00 USD Million [+]
Loans to Private Sector 334758.00 337211.00 337211.00 10928.00 CAD Million [+]
Deposit Interest Rate 0.10 0.55 15.96 0.05 percent [+]
Foreign Stock Investment 15938.00 11412.00 26480.00 -24129.00 CAD Million [+]




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