Canada Interest Rate 1990-2014 | Data | Chart | Calendar | Forecast

The benchmark interest rate in Canada was last recorded at 1 percent. Interest Rate in Canada averaged 6.01 Percent from 1990 until 2014, reaching an all time high of 16.00 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

Actual Previous Highest Lowest Dates Unit Frequency
1.00 1.00 16.00 0.25 1990 - 2014 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 Sunday, November 23, 2014.

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.

The Bank Rate is correspondingly 1 1/4 percent and the deposit rate is 3/4 percent. 

Bank of Canada Statement:

Inflation in Canada is close to the 2 percent target. Core inflation rose more rapidly than was expected in the Bank’s July Monetary Policy Report (MPR), mainly reflecting unexpected sector-specific factors. Total CPI inflation is evolving broadly as expected, as the pickup in core inflation was largely offset by lower energy prices. Underlying inflationary pressures are muted, given the persistent slack in the economy and the continued effects of competition in the retail sector.

Although the outlook remains for stronger momentum in the global economy in 2015 and 2016, the profile is weaker than in July and growth prospects are diverging across regions. Persistent headwinds continue to buffet most economies and growth remains reliant on exceptional policy stimulus. Against a background of ongoing geopolitical uncertainties and lower confidence, energy prices have declined and there has been a significant correction in global financial markets, resulting in lower government bond yields. Despite weakness elsewhere, the U.S. economy is gaining traction, particularly in sectors that are beneficial to Canada’s export prospects. The U.S. dollar has strengthened against other major currencies, including the Canadian dollar.

In this context, Canada’s exports have begun to respond. However, business investment remains weak. Meanwhile, the housing market and consumer spending are showing renewed vigour and auto sales have reached record highs, all fuelled by very low borrowing rates. The lower terms of trade will have a tempering effect on income.

Canada’s real GDP growth is projected to average close to 2 1/2 percent over the next year before slowing gradually to 2 percent by the end of 2016, roughly the estimated growth rate of potential output. As global headwinds recede, confidence in the sustainability of domestic and global demand should improve and business investment should pick up. Together with a moderation in the growth of household spending, this is expected to gradually retur CCanada’s economy to a more balanced growth path. As the economy reaches its full capacity in the second half of 2016, both core and total CPI inflation are projected to be about 2 percent on a sustained basis.

Weighing all of these factors, the Bank judges that the risks to its inflation projection are roughly balanced. Meanwhile, the financial stability risks associated with household imbalances are edging higher. Overall, the balance of risks falls within the zone for which the current stance of monetary policy is appropriate and therefore the target for the overnight rate remains at 1 percent.

Bank of Canada | Joana Taborda |
10/22/2014 3:13:46 PM

Recent Releases

Canada Holds Key Rate at 1%
At its September 3rd meeting, the Bank of Canada decided to leave the overnight rate unchanged at 1 percent, saying risks to the inflation outlook remain balanced. Published on 2014-09-03

Canada Leaves Monetary Policy Unchanged
The Bank of Canada announced on July 16th that it is maintaining its target for the overnight rate at 1 percent. The Bank Rate is correspondingly 1 1/4 percent and the deposit rate is 3/4 percent. Published on 2014-07-16

Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-07-16 03:00 PM
BoC Interest Rate Decision 
1.0% 1% 1.0% 1%
2014-09-03 03:00 PM
BoC Interest Rate Decision 
1.0% 1.0% 1.0% 1%
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%

Canada Money Last Previous Highest Lowest Unit
Interest Rate 1.00 1.00 16.00 0.25 percent [+]
Interbank Rate 1.00 0.99 21.57 0.24 percent [+]
Money Supply M0 72287.00 72204.00 72287.00 2214.00 CAD Million [+]
Money Supply M1 740531.00 733377.00 743261.00 30706.00 CAD Million [+]
Money Supply M2 1284909.00 1275956.00 1284909.00 25523.00 CAD Million [+]
Money Supply M3 1865139.00 1851839.00 1865139.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 93388.00 91978.00 93388.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 73912.00 73687.00 77885.00 1678.10 USD Million [+]
Loans to Private Sector 234855.00 236294.00 236294.00 10151.00 CAD Million [+]
Foreign Stock Investment 4370.00 10290.00 26142.00 -24132.00 CAD Million [+]
Banks Balance Sheet 4276678.00 4193268.00 4276678.00 10516.00 CAD Million [+]