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. source: Bank of Canada

Interest Rate in Canada averaged 5.82 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 June 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
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% 0.25% 0.25%
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%
2021-07-05 01:30 PM BoC Business Outlook Survey
2021-07-14 02:00 PM BoC Monetary Policy Report
2021-07-14 02:00 PM BoC Interest Rate Decision 0.25%
2021-09-08 02:00 PM BoC Interest Rate Decision 0.25%


News Stream
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
BoC Keeps Rates Steady, GDP Growth in Q1 Seen Positive
The Bank of Canada lefts its key overnight rate unchanged at 0.25% on March 10th 2021, in line with expectations. The Bank also maintained its extraordinary forward guidance, reinforced and supplemented by its quantitative easing program, which continues at its current pace of at least CAD 4 billion per week. Policymakers said that despite the stronger near-term outlook, there is still considerable economic slack and a great deal of uncertainty about the evolution of the virus and the path of economic growth. GDP growth in the first quarter of 2021 is now expected to be positive, rather than the contraction forecast in January. CPI inflation is likely to move temporarily to around the top of the 1-3 percent target band in the next few months, reflecting base-year effects from deep price declines in some goods and services at the outset of the crisis a year ago, combined with higher gasoline prices pushed up by the recent run-up in oil prices. CPI inflation is then expected to moderate
2021-03-10
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 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.