The Bank of Canada raised the target for its overnight rate by 25bps to 5% in July 2023, as expected by markets, backing the surprise 25bps rate hike from the previous meeting and extending its tightening cycle after the brief pause in March and April. The central bank’s Governing Council stated that stronger-than-expected consumption and stubbornly tight labor markets drove inflationary pressures to remain persistent for services, warranting another increase in borrowing costs. Consequently, the bank revised its forecast to show that the slowdown in inflation will take longer than previously expected, set to hover around the 3% mark for next year before easing to the 2% target in the middle of 2025. 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 August of 2023.

Interest Rate in Canada is expected to be 5.25 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 3.50 percent in 2024 and 3.00 percent in 2025, according to our econometric models.

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Canada Interest Rate



Calendar GMT Reference Actual Previous Consensus TEForecast
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%
2023-07-12 02:00 PM BoC Interest Rate Decision 5% 4.75% 5% 5.0%
2023-09-06 02:00 PM BoC Interest Rate Decision 5% 5% 5.25%
2023-09-20 05:30 PM BoC Summary of Deliberations
2023-10-24 02:00 PM BoC Interest Rate Decision


Related Last Previous Unit Reference
Interest Rate 5.00 4.75 percent Jul 2023
Money Supply M1 1509363.00 1505884.00 CAD Million Jun 2023
Central Bank Balance Sheet 357830.00 357506.00 CAD Million Jul 2023
Banks Balance Sheet 1182951.00 1175912.00 CAD Million Jun 2023
Deposit Interest Rate 5.13 5.13 percent Aug 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
5.00 4.75 16.00 0.25 1990 - 2023 percent Daily

News Stream
BoC Raises Interest Rate by 25bps
The Bank of Canada raised the target for its overnight rate by 25bps to 5% in July 2023, as expected by markets, backing the surprise 25bps rate hike from the previous meeting and extending its tightening cycle after the brief pause in March and April. The central bank’s Governing Council stated that stronger-than-expected consumption and stubbornly tight labor markets drove inflationary pressures to remain persistent for services, warranting another increase in borrowing costs. Consequently, the bank revised its forecast to show that the slowdown in inflation will take longer than previously expected, set to hover around the 3% mark for next year before easing to the 2% target in the middle of 2025. 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.
2023-07-12
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