Canada : BoC Interest Rate - Policy Interest Rate

Macro

2026-07-15

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's benchmark interest rate was maintained at 2.25% in the third quarter of 2026, unchanged from the previous quarter, marking the sixth consecutive hold. Although short-term energy prices have pushed headline inflation above 3%, core inflation remains under control and the labor market appears slightly soft. Most market institutions expect this rate level to be maintained until the end of 2026.

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AI Data Insight

The Bank of Canada's benchmark interest rate was maintained at 2.25% in the third quarter of 2026, unchanged from the previous quarter, marking the sixth consecutive hold. Although short-term energy prices have pushed headline inflation above 3%, core inflation remains under control and the labor market appears slightly soft. Most market institutions expect this rate level to be maintained until the end of 2026.

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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