Bank of Canada

Bank of Canada2018-02-13T10:02:22+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

1.25%

Qualifying Rate

5.14%

Prime Lending Rate

3.45%

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

2018 Interest Rate Announcement Schedule

The Bank of Canada’s 2018 schedule for policy interest rate announcements and quarterly Monetary Policy Reports. The scheduled announcement dates for 2018 are as follows:

Wednesday, January 17*
Wednesday, March 7
Wednesday, April 18*
Wednesday, May 30
Wednesday, July 11*
Wednesday, September 5
Wednesday, October 24*
Wednesday, December 5

*Monetary Policy Report published

All rate announcements will be made at 10:00 (ET), and the Monetary Policy Report will be published concurrently with the January, April, July and October rate announcements.

Bank of Canada News and Announcements

Bank of Canada Increases Qualifying Rate

The bar is now higher for homebuyers to qualify for mortgages in Canada after the central bank raised a key metric used in stress tests that determine borrowers' eligibility. The Bank of Canada raised the conventional five-year mortgage rate from 5.14 per cent to 5.34 per cent after all Big Six banks raised their posted five-year fixed mortgage rates in recent weeks. The central bank qualifying rate is separate from the actual mortgage rates offered by banks to borrowers, but is used to assess homebuyers who are seeking loans. Homebuyers with less than a 20 per cent down payment seeking [...]

May 11th, 2018|

Bank of Canada Maintains Rates

The Bank of Canada today maintained its target for the overnight rate at 1 ¼ per cent. The Bank Rate is correspondingly 1 ½ per cent and the deposit rate is 1 per cent. Inflation in Canada is close to 2 per cent as temporary factors that have been weighing on inflation have largely dissipated, as expected. Consistent with an economy operating with little slack, core measures of inflation have continued to edge up and are all now close to 2 per cent. The transitory impact of higher gasoline prices and recent minimum wage increases will likely cause inflation in [...]

April 18th, 2018|

Bank of Canada Raises Rates

As predicted, the Bank of Canada opted to increase its target for the overnight rate today to 1.25%, up from 1%. It's reasoning? Strong recent data, close-to-target inflation and an economy that's operating pretty much at capacity. While things are looking up right now, however, the Bank doesn't expect it to stay this strong for long. It predicts real GDP growth will slow to 2.2% in 2018 and 1.6% in 2019. For a bit of context, the Bank estimates GDP growth reached 3.0% in 2017. The uncertain state of NAFTA is also clouding future economic predictions and definitely has [...]

January 17th, 2018|
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