Canada Interest Rate  1990-2017 | Data | Chart | Calendar | Forecast

The Bank of Canada held its overnight rate steady at 0.5 percent on April 12th, 2017, matching market expectations. Policymakers said growth was stronger than anticipated and inflation is in line with the target although significant uncertainties weigh on the outlook. The Bank Rate was also left on hold at 0.75 percent and the deposit rate at 0.25 percent. Policymakers also revised GDP and inflation forecasts. Interest Rate in Canada averaged 5.93 percent from 1990 until 2017, reaching an all time high of 16 percent in February of 1991 and a record low of 0.25 percent in April of 2009.

Canada Interest Rate
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Calendar GMT Reference Actual Previous Consensus Forecast (i)
2017-01-18 03:00 PM BoC Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2017-03-01 03:00 PM BoC Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2017-04-12 02:00 PM BoC Interest Rate Decision 0.5% 0.5% 0.5% 0.5%
2017-05-24 02:00 PM BoC Interest Rate Decision 0.5%
2017-07-12 02:00 PM BoC Interest Rate Decision 0.5%
2017-07-12 02:00 PM BoC Monetary Policy Report




Canada Leaves Monetary Policy Unchanged


The Bank of Canada held its overnight rate steady at 0.5 percent on April 12th, 2017, matching market expectations. Policymakers said growth was stronger than anticipated and inflation is in line with the target although significant uncertainties weigh on the outlook. The Bank Rate was also left on hold at 0.75 percent and the deposit rate at 0.25 percent. Policymakers also revised GDP and inflation forecasts.

The economy is expected to expand 2.6 percent in 2017 (2.1 percent in the January estimate) and 1.9 percent in 2018 (2.1 percent in the January estimate). Forecasts for inflation were revised higher to 1.9 percent this year (1.8 percent) and 2 percent in 2019 (1.9 percent).

Statement by the Bank of Canada:

Global economic growth is strengthening and becoming more broadly-based than the Bank had expected in its January Monetary Policy Report (MPR), although there is still considerable uncertainty about the outlook. In the United States, some temporary factors weighed on economic activity in the first quarter but the drivers of growth remain solid. The US is close to full employment, unlike many other advanced economies, including Canada, where material slack remains. Global financial conditions remain accommodative. The Bank expects global GDP growth to increase from 3 1/4 per cent this year to about 3 1/2 per cent in 2018 and 2019.

In Canada, recent data indicate that economic growth has been faster than was expected in the January MPR. Growth was temporarily boosted by a resumption of spending in the oil and gas sector and the effects of the Canada Child Benefit on consumer spending. Residential investment has also been stronger than expected. Employment data have been robust, although gains in hours worked are still soft. Meanwhile, export growth has been uneven in the face of ongoing competitiveness challenges. Further, despite a recent uptick in sentiment, business investment remains well below what could be expected at this stage in the recovery. Accordingly, while the recent rebound in GDP is encouraging, it is too early to conclude that the economy is on a sustainable growth path.

During the rest of this year and into 2018 and 2019, growth in Canada is expected to moderate but remain above potential. At the same time, its composition is expected to broaden as the pace of household spending, especially residential investment, slows while the contributions from exports and business investment increase. The Bank now projects real GDP growth of 2 1/2 per cent in 2017 and just below 2 per cent in 2018 and 2019. Meanwhile, the Bank has revised down its projection of potential growth, reflecting persistently weak investment. With this combination of a higher profile for economic activity and a lower profile for potential, the output gap is projected to close in the first half of 2018, a bit sooner than the Bank anticipated in January.  

CPI inflation is now at the 2 per cent target, largely because of the transitory effects of higher oil prices and carbon pricing measures in two provinces, as well as other temporary factors. The Bank’s three measures of core inflation, on the other hand, have been drifting down in recent quarters and wage growth remains subdued, consistent with material excess capacity in the economy. CPI inflation is expected to dip in the months ahead, as the temporary factors unwind, and then return to 2 per cent later in the projection horizon as the output gap closes.

The Bank’s Governing Council acknowledges the strength of recent data, some of which is temporary, and is mindful of the significant uncertainties weighing on the outlook. In this context, Governing Council judges that the current stance of monetary policy is still appropriate and maintains the target for the overnight rate at 1/2 per cent.

BoC | Joana Taborda | joana.taborda@tradingeconomics.com
4/12/2017 2:17:38 PM



Canada Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.50 16.00 0.25 percent [+]
Interbank Rate 0.93 0.93 8.95 0.43 percent [+]
Money Supply M0 84678.00 84581.00 84678.00 2214.00 CAD Million [+]
Money Supply M1 902086.00 904578.00 904578.00 30706.00 CAD Million [+]
Money Supply M2 1506612.00 1509092.00 1509092.00 25523.00 CAD Million [+]
Money Supply M3 2242521.00 2237401.00 2242521.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 103896.00 104542.00 105830.00 2226.00 CAD Million [+]
Banks Balance Sheet 5145541.00 5046294.00 5237181.00 10516.00 CAD Million [+]
Foreign Exchange Reserves 82554.00 82091.00 84783.00 1678.00 USD Million [+]
Loans to Private Sector 350654.00 348634.00 350654.00 10928.00 CAD Million [+]
Deposit Interest Rate 0.10 0.10 15.96 0.05 percent [+]
Foreign Stock Investment 38836.00 6352.00 38836.00 -24129.00 CAD Million [+]
Private Debt to GDP 256.08 241.87 256.08 177.36 percent [+]


Canada Interest Rate Notes

In Canada, benchmark interest rate is set by the Bank of Canada's (BoC) Governing Council. The official interest rate is the Overnight 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. Canada Interest Rate - actual data, historical chart and calendar of releases - was last updated on April of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.50 16.00 0.25 1990 - 2017 percent Daily



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