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 percent from 1990 until 2014, 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
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 Thursday, December 18, 2014.


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.

Bank of Canada Statement:

Inflation has risen by more than expected. The increase in inflation over the past year is largely due to the temporary effects of a lower Canadian dollar and some sector-specific factors, notably telecommunications and meat prices. Underlying inflation has edged up but remains below 2 percent.

The U.S. economy has clearly strengthened, particularly business investment, which has benefitted Canada’s exports. Growth in the rest of the world, in contrast, continues to disappoint, leading authorities in some regions to deploy further policy stimulus. Oil prices have continued to fall, due to both supply and demand developments. In this context, global financial conditions have eased further.

Canada's economy is showing signs of a broadening recovery. Stronger exports are beginning to be reflected in increased business investment and employment. This suggests that the hoped-for sequence of rebuilding that will lead to balanced and self-sustaining growth may finally have begun. However, the lower profile for oil and certain other commodity prices will weigh on the Canadian economy.

The net effect of these recent developments, together with upward revisions to historical data, is that the output gap appears to be smaller than the Bank had projected in the October Monetary Policy Report (MPR). However, the labour market continues to indicate significant slack in the economy.

While inflation is at a higher starting point relative to the October MPR, weaker oil prices pose an important downside risk to the inflation profile. This is tempered by a stronger U.S. economy, Canadian dollar depreciation, and recent federal fiscal measures. Household imbalances,meanwhile, present a significant risk to financial stability. Overall, the balance of risks remains within the zone for which the current stance of monetary policy is appropriate and therefore the target for the overnight rate remains at 1 per cent.

Bank of Canada | Carolina | carolina.cunha@tradingeconomics.com
12/3/2014 3:29:58 PM


Recent Releases

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

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


Calendar GMT Event Actual Previous Consensus Forecast (i)
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% 1.0% 1.0% 1%
2015-01-21 03:00 PM
BoC Interest Rate Decision 
1%
2015-03-04 03:00 PM
BoC Interest Rate Decision 
1%
2015-04-15 03:00 PM
BoC Interest Rate Decision 
1%


Canada Money Last Previous Highest Lowest Unit
Interest Rate 1.00 1.00 16.00 0.25 percent [+]
Interbank Rate 1.00 1.00 21.57 0.24 percent [+]
Money Supply M0 72709.00 72287.00 72709.00 2214.00 CAD Million [+]
Money Supply M1 748798.00 740531.00 748798.00 30706.00 CAD Million [+]
Money Supply M2 1293210.00 1284909.00 1293210.00 25523.00 CAD Million [+]
Money Supply M3 1876393.00 1865139.00 1876393.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 92036.00 93388.00 93388.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 74111.00 73912.00 77885.00 1678.10 USD Million [+]
Loans to Private Sector 234225.00 234855.00 236294.00 10151.00 CAD Million [+]
Foreign Stock Investment 9530.00 4640.00 26142.00 -24132.00 CAD Million [+]
Banks Balance Sheet 4276678.00 4193268.00 4276678.00 10516.00 CAD Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Dec/14 2.50 17.50 2.50 percent [+]
Brazil 11.75 Dec/14 11.25 45.00 7.25 percent [+]
Canada 1.00 Dec/14 1.00 16.00 0.25 percent [+]
China 5.60 Nov/14 6.00 10.98 5.31 percent [+]
Euro Area 0.05 Dec/14 0.05 4.75 0.05 percent [+]
France 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Germany 0.05 Dec/14 0.05 4.75 0.05 percent [+]
India 8.00 Dec/14 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Dec/14 7.75 12.75 5.75 percent [+]
Italy 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Japan 0.00 Nov/14 0.00 9.00 0.00 percent [+]
Mexico 3.00 Dec/14 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Russia 17.00 Dec/14 9.50 17.00 5.00 percent [+]
South Korea 2.00 Dec/14 2.00 5.25 2.00 percent [+]
Spain 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Switzerland 0.00 Dec/14 0.00 3.50 0.00 percent [+]
Turkey 8.25 Nov/14 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Dec/14 0.50 17.00 0.50 percent [+]
United States 0.25 Dec/14 0.25 20.00 0.25 percent [+]