Canada Interest Rate  1990-2018 | Data | Chart | Calendar | Forecast

The Bank of Canada left its benchmark interest rate steady at 1.5 percent on September 5th 2018, in line with market expectations, following a 25bps hike in the previous meeting. Policymakers reinforced their vision that higher interest rates will be needed to achieve the inflation target of 2 percent. The Bank Rate is correspondingly 1.75 percent and the deposit rate is 1.25 percent. Interest Rate in Canada averaged 5.89 percent from 1990 until 2018, 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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Canada Leaves Monetary Policy Unchanged


The Bank of Canada left its benchmark interest rate steady at 1.5 percent on September 5th 2018, in line with market expectations, following a 25bps hike in the previous meeting. Policymakers reinforced their vision that higher interest rates will be needed to achieve the inflation target of 2 percent. The Bank Rate is correspondingly 1.75 percent and the deposit rate is 1.25 percent.

Statement by the Bank of Canada:

CPI inflation moved up to 3 per cent in July. This was higher than expected, in large part because of a jump in the airfare component of the consumer price index. The Bank expects CPI inflation to move back towards 2 per cent in early 2019, as the effects of past increases in gasoline prices dissipate. The Bank’s core measures of inflation remain firmly around 2 per cent, consistent with an economy that has been operating near capacity for some time. Wage growth remains moderate.     

Recent data on the global economy have been consistent with the Bank’s July Monetary Policy Report (MPR) projections. The US economy is particularly robust, with strong consumer spending and business investment. Elevated trade tensions remain a key risk to the global outlook and are pulling some commodity prices lower. Meanwhile, financial stresses have intensified in certain emerging market economies, but with limited spillovers to other countries.

The Canadian economy is evolving closely in line with the Bank’s July projection for growth to average near potential. Following growth of 1.4 per cent in the first quarter, GDP rebounded by 2.9 per cent in the second quarter, as the Bank had forecast. GDP growth is expected to slow temporarily in the third quarter, mainly because of further fluctuations in energy production and exports.

While uncertainty about trade policies continues to weigh on businesses, the rotation of demand towards business investment and exports is proceeding. Despite choppiness in the data, both business investment and exports have been growing solidly for several quarters. Meanwhile, activity in the housing market is beginning to stabilize as households adjust to higher interest rates and changes in housing policies. Continuing gains in employment and labour income are helping to support consumption. As past interest rate increases work their way through the economy, credit growth has moderated and the household debt-to-income ratio is beginning to edge down.

Recent data reinforce Governing Council’s assessment that higher interest rates will be warranted to achieve the inflation target. We will continue to take a gradual approach, guided by incoming data. In particular, the Bank continues to gauge the economy’s reaction to higher interest rates. The Bank is also monitoring closely the course of NAFTA negotiations and other trade policy developments, and their impact on the inflation outlook.


BoC | Joana Taborda | joana.taborda@tradingeconomics.com
9/5/2018 2:08:50 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-05-30 02:00 PM BoC Interest Rate Decision 1.25% 1.25% 1.25% 1.25%
2018-07-11 02:00 PM BoC Interest Rate Decision 1.5% 1.25% 1.5% 1.5%
2018-09-05 02:00 PM BoC Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-09-27 09:45 PM BoC Gov Poloz Speech
2018-10-24 02:00 PM BoC Interest Rate Decision 1.5% 1.5%
2018-10-24 02:00 PM BoC Monetary Policy Report


Canada Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 16.00 0.25 percent [+]
Interbank Rate 2.00 1.99 8.95 0.43 percent [+]
Money Supply M0 91480.00 90890.00 91480.00 2214.00 CAD Million [+]
Money Supply M1 980632.00 981699.00 981699.00 30706.00 CAD Million [+]
Money Supply M2 1611709.00 1607547.00 1611709.00 25523.00 CAD Million [+]
Money Supply M3 2336698.00 2329151.00 2377425.00 37982.00 CAD Million [+]
Banks Balance Sheet 5552930.00 5676343.00 5676343.00 10516.00 CAD Million [+]
Central Bank Balance Sheet 113929.00 111556.00 113929.00 2226.00 CAD Million [+]
Foreign Exchange Reserves 81238.00 81817.00 86805.00 1678.00 USD Million [+]
Loans to Private Sector 402786.00 401763.00 402786.00 10904.00 CAD Million [+]
Deposit Interest Rate 0.10 0.10 15.96 0.05 percent [+]
Foreign Stock Investment 12650.00 10300.00 38783.00 -24129.00 CAD Million [+]
Private Debt to GDP 266.61 264.66 266.61 175.61 percent [+]


Canada Interest Rate

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 September of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.50 16.00 0.25 1990 - 2018 percent Daily




interest rate by Country
Country Last
Argentina 60.00 Sep/18
Turkey 24.00 Sep/18
Mexico 7.75 Aug/18
Russia 7.50 Sep/18
Brazil 6.50 Sep/18
India 6.50 Aug/18
South Africa 6.50 Sep/18
Indonesia 5.50 Aug/18
China 4.35 Aug/18
Saudi Arabia 2.50 Aug/18
United States 2.00 Aug/18
Australia 1.50 Sep/18
Canada 1.50 Sep/18
South Korea 1.50 Aug/18
Singapore 1.06 Aug/18
United Kingdom 0.75 Sep/18
Euro Area 0.00 Sep/18
France 0.00 Sep/18
Germany 0.00 Sep/18
Italy 0.00 Sep/18
Netherlands 0.00 Sep/18
Spain 0.00 Sep/18
Japan -0.10 Sep/18
Switzerland -0.75 Sep/18


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