Canada Interest Rate

Last Release

Jan 29, 2025

Actual

Units In

3.25

Frequency

Daily

Next Release

Mar 12, 2025

Time to Release

1 Months 9 Days 14 Hours

Highest	Lowest	Average	Date Range	Source
16 Feb 1991	0.25 Apr 2009	5.77 %	1990-2025	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 3% in its January 2025 decision, as markets expected, to mark 200bps in rate cuts since the start of the cutting cycle in June 2024. In the meantime, the central bank also announced the end of quantitative tightening, and will restart asset purchases in early March to support liquidity and traction of economic activity. The Governing Council noted that CPI inflation converged to the 2% mark in recent months and is expected to remain close to the target in the upcoming two years, as underlying price growth continues to slow. In turn, the council also flagged concerns that tariffs from the US would bring tests to Canada's economic recovery, hampering key sources of demand for domestic goods and services. Still, the BoC expects GDP growth to strengthen in the year, projecting an expansion of 1.8% in the two upcoming years following expectations of a 1.3% growth in 2024, according to the new Monetary Policy Report.