Canada Interest Rate

Last Release

Jul 24, 2024

Actual

4.5

Units In

4.75

Frequency

Daily

Next Release

Sep 04, 2024

Time to Release

1 Months 9 Days 13 Hours

Highest	Lowest	Average	Date Range	Source
16 Feb 1991	0.25 Apr 2009	5.78 %	1990-2024	Bank of Canada

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.

Latest Updates

The Bank of Canada cut its key interest rate by 25bps to 4.5% in its July 2024 meeting, as expected by a portion of the market, extending the central bank’s 25bps cut from the June meeting after having left the hiking cycle’s terminal rate of 5% for 10 months. The BoC’s Governing Council noted that excess supply in the Canadian economy has aided in slowing inflation in recent months, warranting looser monetary policy as the Canadian labor market has shown signs of moderation. The central bank also noted that, in combination with metrics that underscore excess supply, lower interest rates could contribute to a slowdown in mortgage and shelter costs, which have been the largest contributor to inflation. The Governing Council sees CPI inflation to decrease in the second half of the year due to base effects for gasoline prices, before steadying at the 2% level in 2025.