The Bank of Canada held its target for the overnight rate at 0.25% on September 9th 2021, in line with forecasts, and maintained the quantitative easing program at a target pace of $2 billion per week, following a $1 billion cut in the previous meeting. Policymakers continue to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery. Also, the central bank judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. the bank remains committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. In the Bank’s July projection, this happens in the second half of 2022. source: Bank of Canada

Interest Rate in Canada averaged 5.81 percent from 1990 until 2021, reaching an all time high of 16 percent in February of 1991 and a record low of 0.25 percent in April of 2009. This page provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2021.

Interest Rate in Canada is expected to be 0.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Interest Rate is projected to trend around 0.75 percent in 2022 and 1.50 percent in 2023, according to our econometric models.

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Canada Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 16.00 0.25 1990 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2021-04-21 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-06-09 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-07-14 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-09-08 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-10-18 01:30 PM BoC Business Outlook Survey
2021-10-27 02:00 PM BoC Monetary Policy Report
2021-10-27 02:00 PM BoC Interest Rate Decision 0.25%
2021-12-08 03:00 PM BoC Interest Rate Decision 0.25%
Go to our Calendar for more events. Or learn more about the Calendar API for direct access.


News Stream
Canada Holds Rates and QE Steady
The Bank of Canada held its target for the overnight rate at 0.25% on September 9th 2021, in line with forecasts, and maintained the quantitative easing program at a target pace of $2 billion per week, following a $1 billion cut in the previous meeting. Policymakers continue to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery. Also, the central bank judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. the bank remains committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. In the Bank’s July projection, this happens in the second half of 2022.
2021-09-08
BoC Adjusts Quantitative Easing Program
The Bank of Canada left its key overnight rate unchanged at 0.25% on July 14th, as expected but adjusted the quantitative easing program to a target pace of $2 billion from $3 billion per week. The adjustment reflects continued progress towards recovery and the Bank’s increased confidence in the strength of the Canadian economic outlook. The third wave of the virus slowed growth in the second quarter but falling COVID-19 cases, progress on vaccinations, and easing containment restrictions all point to a strong pickup in the second half of this year. The Bank now expects GDP growth of around 6% in 2021, a little slower than was expected in April, but has revised up its 2022 forecast to 4.5% and projects 3.25% growth in 2023. Policymakers expect inflation to remain above 3 percent through the second half of this year and ease back toward 2 percent in 2022.
2021-07-14
Canada Leaves Monetary Policy Steady
The Bank of Canada left its key overnight rate unchanged at 0.25% on June 9th 2021, as expected. The quantitative easing program was also kept at a target pace of $3 billion per week, following a C$1 billion reduction in the previous meeting. The central bank judges that there remains considerable excess capacity in the Canadian economy, and that the recovery continues to require extraordinary monetary policy support. The bank remains committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s April projection, this happens sometime in the second half of 2022.
2021-06-09
Canada Lowers Bond Purchases
The Bank of Canada lefts its key overnight rate unchanged at 0.25% on April 21st 2021, in line with expectations, and said weekly net purchases of Government of Canada bonds will be adjusted to a target of C$3 billion from C$4 billion, effective the week of April 26. Policymakers noted that economic growth in Q1 appears considerably stronger than the Bank’s January forecast, as households and companies adapted to the second wave and associated restrictions. GDP growth forecasts were revised higher for 2021 (6.5% vs 4%) but were lowered to 2022 (3.7% vs 4.8%). The inflation is expected to rise temporarily to around the top of the 1-3% inflation-control range, due to base-year effects and higher oil prices. Still, the Bank expects it to ease back toward 2% over the second half of 2021.
2021-04-21

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.