The Bank of Canada kept its benchmark interest rate steady at 1.75 percent on December 4th 2019, as widely expected. It remained the highest rate since December 2008. Policymakers said that the degree of monetary policy accommodation is appropriate and added that future decisions will be guided by the Bank’s continuing assessment of the adverse impact of trade conflicts against the sources of resilience in the Canadian economy. The Bank Rate and deposit rate were also left unchanged at 2.0 percent and 1.50 percent, respectively. Interest Rate in Canada averaged 5.87 percent from 1990 until 2019, reaching an all time high of 16 percent in February of 1991 and a record low of 0.25 percent in April of 2009. source: Bank of Canada
Interest Rate in Canada is expected to be 1.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Canada to stand at 1.50 in 12 months time. In the long-term, the Canada Interest Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.