The Bank of Canada left its benchmark interest rate unchanged at 1.75 percent on March 6th 2019, as widely expected. It remained the highest rate since December 2008. Policymakers said that the outlook continues to warrant a policy interest rate that is below its neutral range. The Committee added that they will be watching closely developments in household spending, oil markets, and global trade policy as there is a rise in the uncertainty about the timing of future rate hikes. The Bank Rate and deposit rate were also left unchanged at 2.0 percent and 1.50 percent, respectively. Interest Rate in Canada averaged 5.89 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.

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 1.75 in 12 months time. In the long-term, the Canada Interest Rate is projected to trend around 2.75 percent in 2020, according to our econometric models.

Canada Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-10-24 02:00 PM BoC Interest Rate Decision 1.75% 1.5% 1.75% 1.75%
2018-12-05 03:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-01-09 03:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-03-06 03:00 PM BoC Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-04-15 03:00 PM BoC Business Outlook Survey
2019-04-24 02:00 PM BoC Interest Rate Decision 1.75%
2019-04-24 02:00 PM BoC Monetary Policy Report



Canada Leaves Monetary Policy Unchanged

The Bank of Canada left its benchmark interest rate unchanged at 1.75 percent on March 6th 2019, as widely expected. It remained the highest rate since December 2008. Policymakers said that the outlook continues to warrant a policy interest rate that is below its neutral range. The Committee added that they will be watching closely developments in household spending, oil markets, and global trade policy as there is a rise in the uncertainty about the timing of future rate hikes. The Bank Rate and deposit rate were also left unchanged at 2.0 percent and 1.50 percent, respectively.

Statement by the Bank of Canada:

Recent data suggest that the slowdown in the global economy has been more pronounced and widespread than the Bank had forecast in its January Monetary Policy Report (MPR). While the sources of moderation appear to be multiple, trade tensions and uncertainty are weighing heavily on confidence and economic activity. It is difficult to disentangle these confidence effects from other adverse factors, but it is clear that global economic prospects would be buoyed by the resolution of trade conflicts. 

Many central banks have acknowledged the building headwinds to growth, and financial conditions have eased as a result. Meanwhile, progress in US-China trade talks and policy stimulus in China have improved market sentiment and contributed to firmer commodity prices.

For Canada, the Bank was projecting a temporary slowdown in late 2018 and early 2019, mainly because of last year’s drop in oil prices. The Bank had forecast weak exports and investment in the energy sector and a decline in household spending in oil-producing provinces. However, the slowdown in the fourth quarter was sharper and more broadly based. Consumer spending and the housing market were soft, despite strong growth in employment and labour income. Both exports and business investment also fell short of expectations. After growing at a pace of 1.8 per cent in 2018, it now appears that the economy will be weaker in the first half of 2019 than the Bank projected in January.

Core inflation measures remain close to 2 per cent. CPI inflation eased to 1.4 per cent in January, largely because of lower gasoline prices. The Bank expects CPI inflation to be slightly below the 2 per cent target through most of 2019, reflecting the impact of temporary factors, including the drag from lower energy prices and a wider output gap.

Governing Council judges that the outlook continues to warrant a policy interest rate that is below its neutral range. Given the mixed picture that the data present, it will take time to gauge the persistence of below-potential growth and the implications for the inflation outlook. With increased uncertainty about the timing of future rate increases, Governing Council will be watching closely developments in household spending, oil markets, and global trade policy.


BoC | Stefanie Moya | stefanie.moya@tradingeconomics.com
3/6/2019 3:02:23 PM



Canada Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 16.00 0.25 percent [+]
Interbank Rate 2.03 2.03 8.95 0.43 percent [+]
Money Supply M0 94195.00 93833.00 94210.00 2214.00 CAD Million [+]
Money Supply M1 1001910.00 1008129.00 1008129.00 30706.00 CAD Million [+]
Money Supply M2 1672745.00 1668746.00 1672745.00 25523.00 CAD Million [+]
Money Supply M3 2410404.00 2428480.00 2428480.00 37982.00 CAD Million [+]
Banks Balance Sheet 6082936.00 5901984.00 6082936.00 10516.00 CAD Million [+]
Central Bank Balance Sheet 114621.00 115826.00 116050.00 2110.00 CAD Million [+]
Foreign Exchange Reserves 84420.00 87872.00 87872.00 1678.00 USD Million [+]
Loans to Private Sector 428477.00 433205.00 433205.00 10904.00 CAD Million [+]
Deposit Interest Rate 0.10 0.10 15.96 0.05 percent [+]
Foreign Stock Investment 28398.00 -20488.00 38935.00 -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 March of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 16.00 0.25 1990 - 2019 percent Daily




Country Last Previous
Argentina 65.76 Mar/19
Turkey 24.00 Mar/19
Mexico 8.25 Feb/19
Russia 7.75 Mar/19
South Africa 6.75 Feb/19
Brazil 6.50 Mar/19
India 6.25 Feb/19
Indonesia 6.00 Mar/19
China 4.35 Feb/19
Saudi Arabia 3.00 Feb/19
United States 2.50 Mar/19
Canada 1.75 Mar/19
South Korea 1.75 Feb/19
Singapore 1.66 Feb/19
Australia 1.50 Mar/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Mar/19
France 0.00 Mar/19
Germany 0.00 Mar/19
Italy 0.00 Mar/19
Netherlands 0.00 Mar/19
Spain 0.00 Mar/19
Japan -0.10 Mar/19
Switzerland -0.75 Mar/19


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