Canada Interest Rate 1990-2015 | Data | Chart | Calendar | Forecast

The benchmark interest rate in Canada was last recorded at 0.50 percent. Interest Rate in Canada averaged 5.98 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.

Canada Interest Rate
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Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.75 16.00 0.25 1990 - 2015 percent Daily
In Canada, benchmark interest rate is set 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, September 3, 2015.


Calendar GMT Reference Actual Previous Consensus Forecast (i)
2015-06-11 04:15 PM
2015-07-15 03:00 PM 0.5% 0.75% 0.75% 0.75%
2015-08-25 05:40 PM
2015-09-09 03:00 PM 0.5% 0.5%
2015-09-21 07:45 PM
2015-10-21 03:00 PM 0.5%


Canada Unexpectedly Lowers Key Rate to 0.5%


The Bank of Canada cut its overnight interest rate by 25 bps to 0.50 percent on July 15th, as policymakers voiced concern about the lower outlook for Canadian growth and the elevated risks to financial stability.

The Bank Rate is correspondingly 0.75 percent and the deposit rate is 0.25 percent.

Statement by the Bank of Canada:

Total CPI inflation in Canada has been around 1 per cent in recent months, reflecting year-over-year price declines for consumer energy products. Core inflation has been close to 2 per cent, with disinflationary pressures from economic slack being offset by transitory effects of the past depreciation of the Canadian dollar and some sector-specific factors. Setting aside these transitory effects, the Bank judges that the underlying trend in inflation is about 1.5 to 1.7 per cent.

The Bank’s estimate of growth in Canada in 2015 has been marked down considerably from its April projection. The downward revision reflects further downgrades of business investment plans in the energy sector, as well as weaker-than-expected exports of non-energy commodities and non-commodities. Real GDP is now projected to have contracted modestly in the first half of the year, resulting in higher excess capacity and additional downward pressure on inflation.

The Bank expects growth to resume in the third quarter and begin to exceed potential again in the fourth quarter, led by the non-resource sectors of Canada’s economy. Outside the energy-producing regions, consumer confidence remains high and labour markets continue to improve. This will support consumption, which will also receive a fiscal boost. Recent evidence suggests a pickup in activity and rising capacity pressures among manufacturers, particularly those exporters that are most sensitive to movements in the Canadian dollar. Financial conditions for households and businesses remain very stimulative.

The Bank now projects Canada’s real GDP will grow by just over 1 per cent in 2015 and about 2 1/2 per cent in 2016 and 2017. With this revised growth profile, the output gap is significantly larger than was expected in April, and closes somewhat later. The Bank anticipates that the economy will return to full capacity and inflation to 2 per cent on a sustained basis in the first half of 2017.

The lower outlook for Canadian growth has increased the downside risks to inflation. While vulnerabilities associated with household imbalances remain elevated and could edge higher, Canada’s economy is undergoing a significant and complex adjustment. Additional monetary stimulus is required at this time to help return the economy to full capacity and inflation sustainably to target.

Bank of Canada | joana.ferreira@tradingeconomics.com
7/16/2015 8:57:57 AM


Recent Releases

Canada Leaves Monetary Policy Unchanged
The Bank of Canada left the overnight interest rate on hold at 0.75 percent in May as expected, saying risks to financial stability remain elevated while the economy should return to a solid growth in the second quarter.
Published on 2015-05-27

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.
Published on 2015-04-15

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


Canada Money Last Previous Highest Lowest Unit
Interest Rate 0.50 0.75 16.00 0.25 percent [+]
Interbank Rate 0.50 0.50 21.57 0.24 percent [+]
Money Supply M0 76537.00 76039.00 76537.00 2214.00 CAD Million [+]
Money Supply M1 790059.00 777835.00 790059.00 30706.00 CAD Million [+]
Money Supply M2 1340904.00 1324984.00 1340904.00 25523.00 CAD Million [+]
Money Supply M3 1993457.00 1953511.00 1993457.00 37982.00 CAD Million [+]
Central Bank Balance Sheet 96928.00 94733.00 96928.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 76981.00 76395.00 77885.00 1678.00 USD Million [+]
Loans to Private Sector 255418.00 251507.00 255418.00 10151.00 CAD Million [+]
Foreign Stock Investment 8506.00 -5458.00 26125.00 -24132.00 CAD Million [+]
Banks Balance Sheet 4618891.00 4602299.00 4683469.00 10516.00 CAD Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.00 Sep/15 2.00 17.50 2.00 percent [+]
Brazil 14.25 Sep/15 14.25 45.00 7.25 percent [+]
Canada 0.50 Aug/15 0.75 16.00 0.25 percent [+]
China 4.60 Aug/15 4.85 10.98 4.60 percent [+]
Euro Area 0.05 Aug/15 0.05 4.75 0.05 percent [+]
India 7.25 Aug/15 7.25 14.50 4.25 percent [+]
Indonesia 7.50 Aug/15 7.50 12.75 5.75 percent [+]
Japan 0.00 Aug/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Aug/15 3.00 9.25 3.00 percent [+]
Russia 11.00 Aug/15 11.00 17.00 5.00 percent [+]
South Korea 1.50 Aug/15 1.50 5.25 1.50 percent [+]
Switzerland -0.75 Aug/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Aug/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Aug/15 0.50 17.00 0.50 percent [+]
United States 0.25 Aug/15 0.25 20.00 0.25 percent [+]