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 Tuesday, October 21, 2014.


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.

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

Bank of Canada Statement:

Inflation is close to the 2 percent target and is evolving as the Bank anticipated in its July Monetary Policy Report (MPR). Recent data reinforce the Bank’s view that the earlier pickup in inflation was attributable to the temporary effects of higher energy prices, exchange rate pass-through, and other sector-specific factors rather than to any change in domestic economic fundamentals.

The global economy is performing largely as expected. The recovery in Europe appears to be faltering as the situation in Ukraine weighs on confidence. In the United States, a solid recovery seems to be back on track, with business investment now making a significant contribution to growth. Global financial conditions remain very stimulative and longer-term bond yields have eased even further.

In Canada, stronger growth in the second quarter has brought GDP to almost exactly the level the Bank had projected in July's MPR. Canadian exports surged in the second quarter after a weak winter, supported notably by stronger U.S. investment spending and the past depreciation of the Canadian dollar. While an increasing number of export sectors appear to be turning the corner toward recovery, this pickup will need to be sustained before it will translate into higher business investment and hiring. Meanwhile, activity in the housing market has been stronger than anticipated. The Bank still expects excess capacity in the economy to be absorbed during the next two years.  

Overall, the risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished. The balance of these risks is still 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. The Bank remains neutral with respect to the next change to the policy rate: its timing and direction will depend on how new information influences the outlook and assessment of risks.

Bank of Canada | Joana Taborda | joana.taborda@tradingeconomics.com
9/3/2014 3:09:49 PM


Recent Releases

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

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


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
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% 1.0% 1.0% 1%
2014-10-22 03:00 PM Canada
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 0.99 1.00 21.57 0.24 Percent [+]
Money Supply M0 71674.00 71585.00 71674.00 2214.00 CAD Million [+]
Money Supply M1 724933.00 721853.00 743261.00 30706.00 CAD Million [+]
Money Supply M2 1265600.00 1261734.00 1261734.00 25523.00 CAD Million [+]
Money Supply M3 1836784.00 1814348.00 1814348.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 91617.00 92677.00 92677.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 75466.00 75874.00 77885.00 1678.10 USD Million [+]
Loans to Private Sector 232570.00 231374.00 232755.00 10151.00 CAD Million [+]
Foreign Stock Investment 10280.00 5200.00 26142.00 -24132.00 CAD Million [+]
Banks Balance Sheet 4133510.00 4120631.00 4133510.00 10516.00 CAD Million [+]