The Bank of Canada unexpectedly raised the target for its overnight rate by 25bps to 4.75% in June 2023, after pausing the tightening campaign in the previous two meetings, while markets were anticipating interest rates would be left on hold. Borrowing costs are now at high levels not seen in 22 years, as policymakers consider monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target. Concerns have increased that inflation could get stuck materially above the 2% target, as annual CPI rose to 4.4% in April, the first increase in 10 months, the three-month measures of core inflation have been running in the 3.5-4% range for several months and excess demand is persisting. The central bank will continue to assess the dynamics of core inflation and the outlook for CPI inflation and remains resolute in its commitment to restoring price stability for Canadians. source: Bank of Canada

Interest Rate in Canada averaged 5.78 percent from 1990 until 2023, reaching an all time high of 16.00 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 June of 2023.

Interest Rate in Canada is expected to be 4.75 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 3.00 percent in 2024, according to our econometric models.

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Canada Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2023-03-08 03:00 PM BoC Interest Rate Decision 4.5% 4.5% 4.5% 4.5%
2023-04-12 02:00 PM BoC Interest Rate Decision 4.5% 4.5% 4.5% 4.5%
2023-06-07 02:00 PM BoC Interest Rate Decision 4.75% 4.5% 4.5% 4.5%
2023-06-21 05:30 PM BoC Summary of Deliberations
2023-07-12 02:00 PM BoC Interest Rate Decision 4.75% 4.75%
2023-07-26 05:30 PM BoC Summary of Deliberations


Related Last Previous Unit Reference
Interest Rate 4.75 4.50 percent Jun 2023
Money Supply M1 1505209.00 1524104.00 CAD Million Mar 2023
Central Bank Balance Sheet 382554.00 382327.00 CAD Million Apr 2023
Banks Balance Sheet 1163834.00 1166145.00 CAD Million Mar 2023
Deposit Interest Rate 4.99 4.99 percent Jun 2023

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.
Actual Previous Highest Lowest Dates Unit Frequency
4.75 4.50 16.00 0.25 1990 - 2023 percent Daily

News Stream
Bank of Canada Back to Interest Rate Hikes
The Bank of Canada unexpectedly raised the target for its overnight rate by 25bps to 4.75% in June 2023, after pausing the tightening campaign in the previous two meetings, while markets were anticipating interest rates would be left on hold. Borrowing costs are now at high levels not seen in 22 years, as policymakers consider monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target. Concerns have increased that inflation could get stuck materially above the 2% target, as annual CPI rose to 4.4% in April, the first increase in 10 months, the three-month measures of core inflation have been running in the 3.5-4% range for several months and excess demand is persisting. The central bank will continue to assess the dynamics of core inflation and the outlook for CPI inflation and remains resolute in its commitment to restoring price stability for Canadians.
2023-06-07
Bank of Canada Leaves Rate Unchanged at 4.5%
The Bank of Canada held the target for its overnight rate unchanged at 4.5% in its April 2023 meeting, as previously signaled, and stated that it will continue to monitor the latest economic data for future decisions on the policy rate. The decision followed the tightening pause in March, as the Governing Council believes that current borrowing costs are restrictive enough to bring inflation down to the 2% level and opted to support slowing growth. Lower energy prices allowed inflation to fall to 5.2% in February after hitting the 39-year high of 8.1% in June 2022, and the central bank’s updated monetary policy report expects inflation to slow to 3% by the middle of the year before gradually reaching the target of 2% by the end of 2024. On the growth front, the governing council revised GPD estimates to grow 1.4% this year and 1.3% in 2024, before picking up to 2.5% in 2025.
2023-04-12
BoC Pauses Rate Hikes as Expected
The Bank of Canada held the target for its overnight rate unchanged at 4.5% in its March 2023 meeting, as previously signaled, and stated that it should continue to hold the rate at the current level should economic conditions develop broadly in line with expectations in the latest Monetary Policy Report. The decision followed a 25bps interest rate hike in January and marked the first halt in the tightening campaign for major monetary authorities, as the BoC opted to shift its priority and support growth. Canadian GDP growth stalled in the fourth quarter of 2022, lower than projections from the central bank. In the meantime, lower energy prices support the slowdown in consumer prices, strengthening the case for a pause in the bank’s tightening cycle. Inflation slowed to 5.9% in January since hitting its peak of 8.1% in June, and the bank continues to expect inflation to fall to 3% in the middle of the year.
2023-03-08