The Bank of Canada held its key rate at 5% in April, as largely expected, and refrained from giving any hints on the start of rate cuts due to persistent upside risks to inflation. The central bank noted that price pressures have eased across a broad range of goods and services since the last meeting, but added that the uncertain macroeconomic backdrop and higher-than-expected commodity prices, including oil, prevent a smoother convergence of disinflation. BoC Governor Macklem added that although the latest data pointed to some progress in modering underlying inflation, the data is still not sufficient to confidently warrant looser monetary policy. Consequently, the BoC expects inflation to remain near the 3% level in the first half of this year before only reaching its target of 2% in 2025. In the meantime, recent data pointing to resilient global economic growth drove policymakers to consider stronger domestic output, with GDP set to expand by 1.5% this year and 2.2% in 2025. source: Bank of Canada

The benchmark interest rate in Canada was last recorded at 5 percent. Interest Rate in Canada averaged 5.78 percent from 1990 until 2024, 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 April of 2024.

The benchmark interest rate in Canada was last recorded at 5 percent. Interest Rate in Canada is expected to be 5.00 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 2025, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2024-01-24 02:45 PM BoC Interest Rate Decision 5% 5% 5% 5%
2024-03-06 02:45 PM BoC Interest Rate Decision 5% 5% 5% 5%
2024-04-10 01:45 PM BoC Interest Rate Decision 5% 5% 5% 5.0%
2024-05-09 02:00 PM BoC Financial System Review
2024-06-05 01:45 PM BoC Interest Rate Decision 5% 5.0%
2024-07-15 02:30 PM BoC Business Outlook Survey


Related Last Previous Unit Reference
Banks Balance Sheet 1209657.00 1208032.00 CAD Million Jan 2024
Central Bank Balance Sheet 306915.00 313597.00 CAD Million Mar 2024
Deposit Interest Rate 4.91 4.91 percent Apr 2024
BoC Interest Rate 5.00 5.00 percent Apr 2024
Money Supply M1 1500614.00 1497548.00 CAD Million Jan 2024

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
5.00 5.00 16.00 0.25 1990 - 2024 percent Daily

News Stream
Bank of Canada Holds Interest Rate at 5%
The Bank of Canada held its key rate at 5% in April, as largely expected, and refrained from giving any hints on the start of rate cuts due to persistent upside risks to inflation. The central bank noted that price pressures have eased across a broad range of goods and services since the last meeting, but added that the uncertain macroeconomic backdrop and higher-than-expected commodity prices, including oil, prevent a smoother convergence of disinflation. BoC Governor Macklem added that although the latest data pointed to some progress in modering underlying inflation, the data is still not sufficient to confidently warrant looser monetary policy. Consequently, the BoC expects inflation to remain near the 3% level in the first half of this year before only reaching its target of 2% in 2025. In the meantime, recent data pointing to resilient global economic growth drove policymakers to consider stronger domestic output, with GDP set to expand by 1.5% this year and 2.2% in 2025.
2024-04-10
Bank of Canada Holds Rates, States Talks of Cuts Premature
The Bank of Canada held its target for the overnight rate at 5% during its March meeting and pledged to continue normalizing the Bank’s balance sheet, as policymakers remained concerned about risks to the outlook for inflation. The bank stated that it will persist in its policy of quantitative tightening until it observes further and sustained easing in core inflation. The latest data revealed that CPI inflation eased to 2.9% in January, but year-over-year and three-month measures of core inflation were in the 3% to 3.5% range. Policymakers project inflation to remain close to 3% during the first half of this year before gradually easing. The bank also noted that GDP growth remained weak and below potential, while employment continues to rise more slowly than the population amid signs that wage pressures may be easing. During a press conference, Governor Macklem said it was too early to consider lowering rates as more time was needed to ensure inflation fell toward the 2% target.
2024-03-06
Bank of Canada Holds Rate at 5%
The Bank of Canada held the target for its overnight rate at 5% for the fourth consecutive decision in January 2024, as widely expected, leaving benchmark borrowing costs at a 22-year high. The Governing Council noted that it remains concerned about risks on the outlook of inflation, particularly that of underlying price growth after preferred core inflation gauges unexpectedly rose in December, warranting a continuation of restrictive monetary policy. The central bank expects headline inflation to remain unchanged near the 3% mark during the first half of the year before easing to the 2% target in 2025. Interest rates were held high despite the notable slowdown in economic activity caused by tight policy, with the Bank noting that consumers have pulled back spending, business investment has contracted and labor market conditions have eased.
2024-01-24