Policy rate in Canada

Banco de Canada · Mensual

2.25% (Jul-26) ABS · % · Mensual · CSV

About this indicator

Source	Bank of Canada
Frequency	Mensual
Release	En las fechas de las reuniones de política monetaria del banco central.
What it is	This is the official interest rate set by the Bank of Canada, the target for the overnight rate, through which it conducts monetary policy. It is the benchmark price of money in the Canadian economy.
How it's calculated	It is not derived statistically: it is set by the Bank of Canada's Governing Council at its scheduled meetings, guided by its 2% inflation target and economic conditions. It is expressed as an annual percentage.
Market implications	Changes in the policy rate feed through to market rates, credit, the Canadian dollar and, via these, to consumption, investment and prices. It is the central bank's main policy tool: a hike tends to strengthen the Canadian dollar and a cut to weaken it.
Limitations	It is a discretionary decision whose effects on the economy operate with long and variable lags. The rate level alone does not capture the future bias, which hinges on the forward guidance and the accompanying statement.