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. source: Bank of Canada
Interest Rate in Canada averaged 5.83 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 February 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.