Canada : BoC Interest Rate - Policy Interest Rate

Macro

2026-06-10

Description

The Bank of Canada (BoC) sets and publishes the Policy Interest Rate, which is the benchmark rate for overnight loans to commercial banks. This rate significantly impacts Canada's economic activity and inflation. The BoC targets a 2% inflation rate; when the economy overheats or inflation pressures rise, the BoC typically raises rates to curb demand. Conversely, when the economy slows or inflation is too low, the BoC lowers rates to stimulate activity.

The BoC holds eight interest rate decision meetings annually and often aligns its policy direction with the US monetary policy.

Published by
Bank of Canada (Choice)
Frequency
Monthly
Next Update
Hashtags

AI Data Insight

The Bank of Canada kept its benchmark interest rate unchanged at 2.25% in the second quarter of 2026, holding steady for the fifth consecutive meeting, completely in line with market consensus. Driven by rising oil prices due to the Middle East war, recent inflation rebounded to 2.8%, but Q1 GDP unexpectedly contracted by 0.1%, leaving the central bank facing severe challenges between fighting inflation and stabilizing the economy.

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AI Data Insight

The Bank of Canada kept its benchmark interest rate unchanged at 2.25% in the second quarter of 2026, holding steady for the fifth consecutive meeting, completely in line with market consensus. Driven by rising oil prices due to the Middle East war, recent inflation rebounded to 2.8%, but Q1 GDP unexpectedly contracted by 0.1%, leaving the central bank facing severe challenges between fighting inflation and stabilizing the economy.

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Macro
Description

The Bank of Canada (BoC) sets and publishes the Policy Interest Rate, which is the benchmark rate for overnight loans to commercial banks. This rate significantly impacts Canada's economic activity and inflation. The BoC targets a 2% inflation rate; when the economy overheats or inflation pressures rise, the BoC typically raises rates to curb demand. Conversely, when the economy slows or inflation is too low, the BoC lowers rates to stimulate activity.

The BoC holds eight interest rate decision meetings annually and often aligns its policy direction with the US monetary policy.

Published by
Bank of Canada (Choice)
Frequency
Monthly
Next Update
Hashtags