Canada Interest Rate 1990-2015 | Data | Chart | Calendar | Forecast

The benchmark interest rate in Canada was last recorded at 0.75 percent. Interest Rate in Canada averaged 6 percent from 1990 until 2015, 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.

      Forecast    
Canada Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
0.75 1.00 16.00 0.25 1990 - 2015 percent Daily
In Canada, interest rate decisions are taken 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. Content for - Canada Interest Rate - was last refreshed on Monday, January 26, 2015.


Canada Lowers Key Rate to 0.75%


The Bank of Canada cut the overnight rate by 25 bps to 0.75 percent on January 21st, saying the recent sharp drop in oil prices will have negative impact on growth and inflation. The Bank Rate was correspondingly lowered to 1 percent and the deposit rate to 0.5 percent.

Statement by the Bank of Canada:

Inflation has remained close to the 2 per cent target in recent quarters. Core inflation has been temporarily boosted by sector-specific factors and the pass-through effects of the lower Canadian dollar, which are offsetting disinflationary pressures from slack in the economy and competition in the retail sector. Total CPI inflation is starting to reflect the fall in oil prices.

Oil’s sharp decline in the past six months is expected to boost global economic growth, especially in the United States, while widening the divergences among economies. Persistent headwinds from deleveraging and lingering uncertainty will influence the extent to which some oil-importing countries benefit from lower prices. The Bank’s base-case projection assumes oil prices around US$60 per barrel. Prices are currently lower but our belief is that prices over the medium term are likely to be higher.

The oil price shock is occurring against a backdrop of solid and more broadly-based growth in Canada in recent quarters. Outside the energy sector, we are beginning to see the anticipated sequence of increased foreign demand, stronger exports, improved business confidence and investment, and employment growth. However, there is considerable uncertainty about the speed with which this sequence will evolve and how it will be affected by the drop in oil prices. Business investment in the energy-producing sector will decline. Canada’s weaker terms of trade will have an adverse impact on incomes and wealth, reducing domestic demand growth.

Although there is considerable uncertainty around the outlook, the Bank is projecting real GDP growth will slow to about 1 1/2 per cent and the output gap to widen in the first half of 2015. The negative impact of lower oil prices will gradually be mitigated by a stronger U.S. economy, a weaker Canadian dollar, and the Bank’s monetary policy response. The Bank expects Canada’s economy to gradually strengthen in the second half of this year, with real GDP growth averaging 2.1 per cent in 2015 and 2.4 per cent in 2016. The economy is expected to return to full capacity around the end of 2016, a little later than was expected in October.

Weaker oil prices will pull down the inflation profile. Total CPI inflation is projected to be temporarily below the inflation-control range during 2015, moving back up to target the following year. Underlying inflation will ease in the near term but then return gradually to 2 per cent over the projection horizon.

The oil price shock increases both downside risks to the inflation profile and financial stability risks. The Bank’s policy action is intended to provide insurance against these risks, support the sectoral adjustment needed to strengthen investment and growth, and bring the Canadian economy back to full capacity and inflation to target within the projection horizon.

Bank of Canada | Joana Taborda | joana.taborda@tradingeconomics.com
1/21/2015 3:12:32 PM


Recent Releases

Canada Leaves Rates on Hold in December
The Bank of Canada maintained the target for the overnight rate at 1 percent at its December 3rd meeting. The Council said that the economy is showing signs of a broadening recovery, yet lower commodity prices and household debt may weight on further expansion. Published on 2014-12-03

Canada Leaves Monetary Policy Unchanged
At its October 22nd meeting, the Bank of Canada decided to leave the overnight rate unchanged at 1 percent, while raising concerns over global economic outlook. Published on 2014-10-22


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-10-22 03:00 PM
BoC Interest Rate Decision 
1.0% 1.0% 1%
2014-12-03 03:00 PM
BoC Interest Rate Decision 
1.0% 1.0% 1.0% 1%
2015-01-21 03:00 PM
BoC Interest Rate Decision 
0.75% 1.0% 1.0% 1%
2015-03-04 03:00 PM
BoC Interest Rate Decision 
0.75% 0.75%
2015-04-15 03:00 PM
BoC Interest Rate Decision 
0.75%
2015-05-27 03:00 PM
BoC Interest Rate Decision 
0.75%


Canada Money Last Previous Highest Lowest Unit
Interest Rate 0.75 1.00 16.00 0.25 percent [+]
Interbank Rate 1.01 1.00 21.57 0.24 percent [+]
Money Supply M0 72926.00 72709.00 72926.00 2214.00 CAD Million [+]
Money Supply M1 750467.00 748863.00 750467.00 30706.00 CAD Million [+]
Money Supply M2 1293253.00 1293210.00 1293253.00 25523.00 CAD Million [+]
Money Supply M3 1883433.00 1876393.00 1883433.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 93292.00 92036.00 93388.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 74700.00 74111.00 77885.00 1678.00 USD Million [+]
Loans to Private Sector 237155.00 234225.00 237155.00 10151.00 CAD Million [+]
Foreign Stock Investment 4290.00 9530.00 26142.00 -24132.00 CAD Million [+]
Banks Balance Sheet 4383802.00 4210979.00 4383802.00 10516.00 CAD Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Dec/14 2.50 17.50 2.50 percent [+]
Brazil 12.25 Jan/15 11.75 45.00 7.25 percent [+]
Canada 0.75 Jan/15 1.00 16.00 0.25 percent [+]
China 5.60 Dec/14 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Jan/15 0.05 4.75 0.05 percent [+]
France 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jan/15 0.05 4.75 0.05 percent [+]
India 7.75 Jan/15 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Jan/15 7.75 12.75 5.75 percent [+]
Italy 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Jan/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Dec/14 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Russia 17.00 Dec/14 9.50 17.00 5.00 percent [+]
South Korea 2.00 Jan/15 2.00 5.25 2.00 percent [+]
Spain 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jan/15 -0.25 3.50 -0.75 percent [+]
Turkey 7.75 Jan/15 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Aug/15 0.50 17.00 0.50 percent [+]
United States 0.25 Dec/14 0.25 20.00 0.25 percent [+]