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 5.99 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 0.75 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 Sunday, April 26, 2015.


Canada Leaves Rates on Hold


The Bank of Canada left the overnight interest rate unchanged at 0.75 percent on April as widely expected, saying current policy stance is appropriate while projecting 0 growth for the first quarter.

The Bank Rate is correspondingly 1 percent and the deposit rate is 1/2 percent.

Statement by the Bank of Canada:

Total CPI inflation is at 1 per cent, reflecting the drop in consumer energy prices. Core inflation has remained close to 2 per cent in recent months, as the temporary effects of sector-specific factors and pass-through of the lower Canadian dollar have offset the disinflationary forces from slack in the economy.

The Bank expects global growth to strengthen and average 3 1/2 per cent per year over 2015-17, in line with the projection in the January Monetary Policy Report (MPR). This is in part because many central banks have eased monetary policies in recent months to counter persistent slack and low inflation, as well as the effect of lower commodity prices in some cases. At the same time, economies continue to adjust to lower oil prices, which have fluctuated at or below levels assumed in the January MPR. Strong growth in the United States is expected to resume in the second quarter of 2015 after a weak first quarter.

The Canadian economy is estimated to have stalled in the first quarter of 2015. The Bank’s assessment is that the impact of the oil price shock on growth will be more front-loaded than predicted in January, but not larger. The ultimate size of this impact will need to be monitored closely. Underneath the effects of the oil price shock, the natural sequence of stronger non-energy exports, increasing investment, and improving labour markets is progressing. This sequence will be bolstered by the considerable easing in financial conditions that has occurred and by improving U.S. demand. As the impact of the oil shock on growth starts to dissipate, this natural sequence is expected to re-emerge as the dominant trend around mid-year. Real GDP growth is projected to rebound in the second quarter and subsequently strengthen to average about 2 1/2 per cent on a quarterly basis until the middle of 2016. The Bank expects real GDP growth of 1.9 per cent in 2015, 2.5 per cent in 2016, and 2.0 per cent in 2017.

The very weak first quarter has led to a widening of Canada’s output gap and additional downward pressure on projected inflation. However, the anticipated recovery in growth means that the output gap will be back in line with its previous trajectory later this year. Consequently, the effects on core inflation of the lower dollar and the output gap will continue to offset each other. As the economy reaches and remains at full capacity around the end of 2016, both total and core inflation are projected to be close to 2 per cent on a sustained basis.

Risks to the outlook for inflation are now roughly balanced and risks to financial stability appear to be evolving as expected. The Bank judges that the current degree of monetary policy stimulus remains appropriate and therefore is maintaining the target for the overnight rate at 3/4 per cent.

Bank of Canada | Joana Taborda | joana.taborda@tradingeconomics.com
4/15/2015 3:09:13 PM


Recent Releases

Canada Leaves Monetary Policy Unchanged
The Bank of Canada maintained the overnight rate at 0.75 percent on March 4th, as financial conditions eased and the risks to the inflation outlook are now more balanced. Published on 2015-03-04

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. Published on 2015-01-21


Calendar GMT Event Actual Previous Consensus Forecast (i)
2015-04-15 03:00 PM
BoC Interest Rate Decision 
0.75% 0.75% 0.75% 0.75%
2015-04-20 03:05 PM
BoC Gov Poloz Speech 
2015-04-24 03:30 PM
BoC Gov Poloz Speech 
2015-04-28 01:45 PM
BoC Gov Poloz Speech 
2015-04-30 03:30 PM
BoC Gov Poloz Speech 
2015-05-27 03:00 PM
BoC Interest Rate Decision 
0.75% 0.75%


Canada Money Last Previous Highest Lowest Unit
Interest Rate 0.75 0.75 16.00 0.25 percent [+]
Interbank Rate 0.75 0.75 21.57 0.24 percent [+]
Money Supply M0 74444.00 73704.00 74444.00 2214.00 CAD Million [+]
Money Supply M1 768635.00 759847.00 768635.00 30706.00 CAD Million [+]
Money Supply M2 1315244.00 1309940.00 1315244.00 25523.00 CAD Million [+]
Money Supply M3 1942113.00 1931120.00 1942113.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 92708.00 92267.00 93388.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 77681.00 74768.00 77885.00 1678.00 USD Million [+]
Loans to Private Sector 244980.00 241285.00 244980.00 10151.00 CAD Million [+]
Foreign Stock Investment 9270.00 5730.00 26142.00 -24132.00 CAD Million [+]
Banks Balance Sheet 4611579.00 4683469.00 4683469.00 10516.00 CAD Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Apr/15 2.25 17.50 2.25 percent [+]
Brazil 12.75 Mar/15 12.25 45.00 7.25 percent [+]
Canada 0.75 Apr/15 0.75 16.00 0.25 percent [+]
China 5.35 Mar/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Apr/15 0.05 4.75 0.05 percent [+]
France 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Apr/15 0.05 4.75 0.05 percent [+]
India 7.50 Apr/15 7.50 14.50 4.25 percent [+]
Indonesia 7.50 Apr/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Apr/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Mar/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Russia 14.00 Mar/15 15.00 17.00 5.00 percent [+]
South Korea 1.75 Apr/15 1.75 5.25 1.75 percent [+]
Spain 0.05 Apr/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Mar/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Apr/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Apr/15 0.50 17.00 0.50 percent [+]
United States 0.25 Mar/15 0.25 20.00 0.25 percent [+]