Bank of Canada

Bank of Canada 2017-09-10T11:25:41+00:00
Bank of Canada

The Bank of Canada

The Bank of Canada is the nation’s central bank. Its principal role is “to promote the economic and financial welfare of Canada,” as defined in the Bank of Canada Act. The Bank’s four main areas of responsibility are:

  • Monetary Policy: The Bank influences the supply of money circulating in the economy, using its monetary policy framework to keep inflation low and stable
  • Financial System: The Bank promotes safe, sound and efficient financial systems, within Canada and internationally, and conducts transactions in financial markets in support of these objectives.
  • Currency: The Bank designs, issues and distributes Canada’s bank notes.
  • Funds Management: The Bank is the “fiscal agent” for the Government of Canada, managing its public debt programs and foreign exchange reserves.

Bank of Canada and Key Interest Rates

Policy Interest Rate

1.00%

Total CPI Inflation

1.20%

Prime Lending Rate

3.20%

***Rates are subject to change at anytime. The Bank of Canada has a set schedule for interest rate adjustments.***

Bank of Canada News and Announcements

Bank of Canada Surprises With a Rate Hike

The Bank of Canada is raising its target for the overnight rate to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. Recent economic data have been stronger than expected, supporting the Bank’s view that growth in Canada is becoming more broadly-based and self-sustaining. Consumer spending remains robust, underpinned by continued solid employment and income growth. There has also been more widespread strength in business investment and in exports. Meanwhile, the housing sector appears to be cooling in some markets in response to recent changes in tax and housing [...]

September 6th, 2017|

Bank of Canada Increases Rate July 2017

The Bank of Canada is raising its target for the overnight rate to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent. Recent data have bolstered the Bank’s confidence in its outlook for above-potential growth and the absorption of excess capacity in the economy. The Bank acknowledges recent softness in inflation but judges this to be temporary. Recognizing the lag between monetary policy actions and future inflation, Governing Council considers it appropriate to raise its overnight rate target at this time. The global economy continues to strengthen and growth is [...]

July 12th, 2017|