The Bank of Canada left its target for the overnight rate at a record low of 0.25 percent on January 20th 2021, in line with expectations. The Bank also maintained its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, which continues at its current pace of at least $4 billion per week. Policymakers said that the COVID-19 pandemic continues to take a severe human and economic toll in Canada and around the world and the outlook remains highly conditional on the path of the virus and the timeline for the effective rollout of vaccines. The Canadian economy is expected to contract in Q1 2021 and assuming restrictions are lifted later in the first quarter, the Bank expects a strong second-quarter rebound. The economy is seen shrinking 5.5% in 2020 (vs -5.7% earlier estimated) and return to growth in 2021 (4% vs 4.2%) and 2022 (4.8% vs 3.7%). The benchmark interest rate is expected to remain at current low levels until into 2023. source: Bank of Canada

Interest Rate in Canada averaged 5.83 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 February 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. 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 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 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-09-09 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-10-28 02:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-12-09 03:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-01-20 03:00 PM BoC Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-03-10 03:00 PM BoC Interest Rate Decision 0.25% 0.25%
2021-04-12 01:30 PM BoC Business Outlook Survey
2021-04-21 02:00 PM BoC Monetary Policy Report
2021-04-21 02:00 PM BoC Interest Rate Decision 0.25%


News Stream
Canada Leaves Rates Steady
The Bank of Canada left its target for the overnight rate at a record low of 0.25 percent on January 20th 2021, in line with expectations. The Bank also maintained its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, which continues at its current pace of at least $4 billion per week. Policymakers said that the COVID-19 pandemic continues to take a severe human and economic toll in Canada and around the world and the outlook remains highly conditional on the path of the virus and the timeline for the effective rollout of vaccines. The Canadian economy is expected to contract in Q1 2021 and assuming restrictions are lifted later in the first quarter, the Bank expects a strong second-quarter rebound. The economy is seen shrinking 5.5% in 2020 (vs -5.7% earlier estimated) and return to growth in 2021 (4% vs 4.2%) and 2022 (4.8% vs 3.7%). The benchmark interest rate is expected to remain at current low levels until into 2023.
2021-01-20
Canada Leaves Monetary Policy Unchanged
The Bank of Canada left its target for the overnight rate at a record low of 0.25 percent on December 9th 2020, in line with expectations. The bank also maintained its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, which continues at its current pace of at least CAD 4 billion per week. Policymakers noted that Canada’s economic recovery will continue to require extraordinary monetary policy support while interest rates will remain low until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. This is expected to happen until into 2023. The bank added that it remains committed to providing the monetary policy stimulus needed to support the recovery and achieve the inflation objective.
2020-12-09
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 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.