The Bank of Canada left its benchmark interest rate unchanged at the effective lower bound of 0.25 percent on October 28th 2020, as widely expected. The Committee said it is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing program. The Bank added that it is recalibrating the QE program to shift purchases towards longer-term bonds, and that total purchases will be gradually reduced to at least CAD 4 billion a week. Policymakers projected an economic contraction of about 5.5% in 2020, to then grow by almost 4% on average in 2021 and 2022, a slower pace than previously forecast. The Committee said growth will likely be choppy as domestic demand is influenced by the evolution of the virus and its impact on consumer and business confidence. Policymakers added that they will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. source: Bank of Canada

Interest Rate in Canada averaged 5.86 percent from 1990 until 2020, 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 December of 2020.

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. Looking forward, we estimate Interest Rate in Canada to stand at 0.25 in 12 months time. In the long-term, the Canada Interest Rate is projected to trend around 0.25 percent in 2021 and 0.50 percent in 2022, 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 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-06-03 02:00 PM 0.25% 0.25% 0.25% 0.25%
2020-07-15 02:00 PM 0.25% 0.25% 0.25% 0.25%
2020-09-09 02:00 PM 0.25% 0.25% 0.25% 0.25%
2020-10-28 02:00 PM 0.25% 0.25% 0.25% 0.25%
2020-12-09 03:00 PM 0.25% 0.25%
Go to our Calendar for more events. Or learn more about the Calendar API for direct access.


News Stream
Canada Holds Interest Rate, Recalibrates QE Program
The Bank of Canada left its benchmark interest rate unchanged at the effective lower bound of 0.25 percent on October 28th 2020, as widely expected. The Committee said it is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing program. The Bank added that it is recalibrating the QE program to shift purchases towards longer-term bonds, and that total purchases will be gradually reduced to at least CAD 4 billion a week. Policymakers projected an economic contraction of about 5.5% in 2020, to then grow by almost 4% on average in 2021 and 2022, a slower pace than previously forecast. The Committee said growth will likely be choppy as domestic demand is influenced by the evolution of the virus and its impact on consumer and business confidence. Policymakers added that they will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved.
2020-10-28
Canada Holds Interest Rate, Continues QE Program
The Bank of Canada kept its benchmark interest rate steady at the effective lower bound of 0.25 percent on September 9th 2020, as widely expected. The Committee said that it will continue its quantitative easing program with large-scale asset purchases of at least CAD 5 billion per week of government bonds. Policymakers noted that the Canadian economy is recovering amid the easing of coronavirus restrictions and supported by government programs to replace incomes and subsidize wage. The Committee projected that economic activity will bounce back at a faster-than-expected pace in the third quarter of the year. Policymakers said that as the economy moves from reopening to recuperation, it will continue to require extraordinary monetary policy support. The Bank Rate and deposit rate were also left unchanged at 0.5% and 0.25%, respectively.
2020-09-09
Canada Holds Interest Rate, Continues QE Program
The Bank of Canada left its benchmark interest rate unchanged at the effective lower bound of 0.25 percent on July 15th 2020, as widely expected. The Committee said that it will continue its quantitative easing program with large-scale asset purchases of at least CAD 5 billion per week of government bonds. Policymakers noted that the Canadian economy is starting to recover amid the easing of coronavirus restrictions but added that the outlook is extremely uncertain given the unpredictability of the course of the pandemic. The Bank expects the economy’s recovery to slow as the outbreak continues to have an impact on confidence and consumer behaviour. Policymakers projected that the real GDP will likely shrink by 7.8% in 2020 and resumes with growth of 5.1% in 2021 and 3.7% in 2022. The Committee added that is prepared to provide further monetary stimulus as needed to support the recovery and achieve the inflation objective.
2020-07-15
Canada Leaves Monetary Policy Unchanged
The Bank of Canada kept its benchmark interest rate steady at the effective lower bound of 0.25 percent on June 3rd 2020, as widely expected. Policymakers noted that the covid-19 pandemic hit output and employment, still fiscal actions combined with lower interest rates are helping for an economic recovery. The Committee reduced the frequency of its term repo operations to once per week, and its program to purchase bankers’ acceptances to bi-weekly operations and said that it is ready to adjust these programs if market conditions warrant. Meanwhile, other programs to purchase federal, provincial, and corporate debt are continuing at their present frequency and scope. The Committee maintained its commitment to continue large-scale asset purchases until the economic recovery is well underway. Policymakers added that they will take any further action if necessary to achieve the inflation target. The Bank Rate and the deposit rate were also left unchanged at 0.5% and 0.25%, respectively.
2020-06-03

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.