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.

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Canada Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
1.00 1.00 16.00 0.25 1990 - 2014 Percent Monthly
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 Wednesday, August 20, 2014.

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.

Bank of Canada Statement:

Total CPI inflation has moved up to around the 2 percent target in recent months, sooner than expected. Core inflation has also increased but remains below 2 percent. Recent higher inflation is attributable to the temporary effects of higher energy prices, exchange rate pass-through and other sector-specific shocks, rather than to any change in domestic economic fundamentals. Over the next two years, inflation is projected to fluctuate around 2 per cent as these temporary effects ease and the downward pressure on inflation from economic slack and heightened retail competition gradually dissipates.

The global economy is on a lower growth track than was foreseen at the time of the April Monetary Policy Report. Serial disappointment with economic performance during the past several years has mainly reflected the impact of private-sector deleveraging, fiscal consolidation and, especially, the lingering effect of uncertainty on business investment and trade. Nevertheless, the Bank continues to project that global growth will gather momentum as these headwinds abate.

Given the downgrade to the global outlook, economic activity in Canada is now projected to be a little weaker than previously forecast. However, the Bank still expects that the lower Canadian dollar and a projected strengthening in global demand will lead to a pickup in Canadian exports and business investment and, eventually, a more sustainable growth track. Meanwhile, household imbalances continue to evolve constructively and recent data are broadly consistent with a soft landing in Canada’s housing market. Real GDP growth is projected to average around 2 1/4 per cent during 2014–2016. Consequently, the economy is expected to reach full capacity around mid-2016, a little later than anticipated in April.

For the inflation target to be achieved on a sustained basis in 2016, the economy must reach and remain at full capacity. Closing the output gap over the time frame described above is reliant on continued stimulative monetary policy and hinges critically on stronger exports and business investment. Meanwhile, the risks associated with household imbalances, while evolving in a constructive way, are still elevated. Weighing these considerations within the Bank’s risk-management framework, the monetary policy stance remains appropriate and the target for the overnight rate remains at 1 per cent. The Bank is neutral with respect to the timing and direction of the next change to the policy rate, which will depend on how new information influences the outlook and assessment of risks.

Bank of Canada | Joana Taborda |
7/16/2014 3:20:32 PM

Recent Releases

Bank of Canada Keeps Overnight Rate at 1%
The Bank of Canada announced on June 4th 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 2014-06-04

Bank of Canada Leaves Rates at 1%
At its April 16th, 2014 meeting, Bank of Canada decided to leave the overnight lending at 1 percent, as the Bank continues to see a gradual strengthening in the fundamental drivers of growth and inflation. Published on 2014-04-16

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-03-05 03:00 PM Canada
BoC Interest Rate Decision
1% 1% 1% 1%
2014-04-16 03:00 PM Canada
BoC Interest Rate Decision
1% 1% 1% 1%
2014-06-04 03:00 PM Canada
BoC Interest Rate Decision
1% 1% 1% 1%
2014-07-16 03:00 PM Canada
BoC Interest Rate Decision
1.0% 1% 1.0% 1%
2014-09-03 03:00 PM Canada
BoC Interest Rate Decision
1.0% 1%

Money Last Previous Highest Lowest Unit
Interest Rate 1.00 1.00 16.00 0.25 Percent [+]
Interbank Rate 0.99 1.00 21.57 0.24 Percent [+]
Money Supply M0 71585.00 71658.00 71658.00 2214.00 CAD Million [+]
Money Supply M1 721853.00 743187.00 743261.00 30706.00 CAD Million [+]
Money Supply M2 1261734.00 1260751.00 1261734.00 25523.00 CAD Million [+]
Money Supply M3 1814348.00 1806236.00 1814348.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 92677.00 90360.00 92677.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 75466.00 75874.00 77885.00 1678.10 USD Million [+]
Loans to Private Sector 231374.00 232755.00 232755.00 10151.00 CAD Million [+]
Foreign Stock Investment -1070.00 21420.00 26142.00 -24132.00 CAD Million [+]

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