The current Canada interest rate is equal 2.25%.
The Bank of Canada rate refers to the interest rate set by the Bank of Canada (BOC), the country's central bank. It serves as a benchmark for other interest rates in the economy, including those for loans and deposits. The Bank of Canada adjusts this rate to manage inflation, maintain price stability, and promote economic growth. Changes in this rate can impact the cost of borrowing, the value of the Canadian dollar, and the overall economic health of Canada.
Canada interest rate forecast for 2026, 2027 and 2028
| Month | Open,% | Min-Max,% | Rate,% | Change |
| Oct | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Nov | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Dec | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| 2027 | ||||
| Jan | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Feb | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Mar | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Apr | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| May | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Jun | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Jul | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Aug | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Sep | 2.25 | 2.00-2.50 | 2.25 | 0.00 |
| Oct | 2.25 | 1.75-2.25 | 2.00 | -0.25 |
| Nov | 2.00 | 1.75-2.25 | 2.00 | 0.00 |
| Dec | 2.00 | 1.75-2.25 | 2.00 | 0.00 |
| 2028 | ||||
| Jan | 2.00 | 1.75-2.25 | 2.00 | 0.00 |
| Feb | 2.00 | 1.75-2.25 | 2.00 | 0.00 |
| Mar | 2.00 | 1.75-2.25 | 2.00 | 0.00 |
| Apr | 2.00 | 1.50-2.00 | 1.75 | -0.25 |
| May | 1.75 | 1.50-2.00 | 1.75 | 0.00 |
| Jun | 1.75 | 1.25-1.75 | 1.50 | -0.25 |
| Jul | 1.50 | 0.75-1.50 | 1.00 | -0.50 |
| Aug | 1.00 | 0.75-1.25 | 1.00 | 0.00 |
| Sep | 1.00 | 0.25-1.00 | 0.50 | -0.50 |
BOC rate prediction for October 2026. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
Canada interest rate forecast for November 2026. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
BOC rate prediction for December 2026. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
CANADIAN MORTGAGE RATES FORECAST 2026, 2027, 2028.
Canada Prime rate Forecast 2026, 2027, 2028.
Canada interest rate forecast for January 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
BOC rate prediction for February 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
Canada interest rate forecast for March 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
BOC rate prediction for April 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
Canada interest rate forecast for May 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
BOC rate prediction for June 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
Canada interest rate forecast for July 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
BOC rate prediction for August 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
Canada interest rate forecast for September 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 2.00% to 2.50%, but it is most likely that the rate will be 2.25%, no change.
BOC rate prediction for October 2027. Starting at 2.25%. This month the interest rate may be changed and receive a new value within the range of 1.75% to 2.25%, but it is most likely that the rate will be 2.00%, with a change of -0.25 points.
Canada interest rate forecast for November 2027. Starting at 2.00%. This month the interest rate may be changed and receive a new value within the range of 1.75% to 2.25%, but it is most likely that the rate will be 2.00%, no change.
BOC rate prediction for December 2027. Starting at 2.00%. This month the interest rate may be changed and receive a new value within the range of 1.75% to 2.25%, but it is most likely that the rate will be 2.00%, no change.
Canada interest rate forecast for January 2028. Starting at 2.00%. This month the interest rate may be changed and receive a new value within the range of 1.75% to 2.25%, but it is most likely that the rate will be 2.00%, no change.
BOC rate prediction for February 2028. Starting at 2.00%. This month the interest rate may be changed and receive a new value within the range of 1.75% to 2.25%, but it is most likely that the rate will be 2.00%, no change.
Canada interest rate forecast for March 2028. Starting at 2.00%. This month the interest rate may be changed and receive a new value within the range of 1.75% to 2.25%, but it is most likely that the rate will be 2.00%, no change.
BOC rate prediction for April 2028. Starting at 2.00%. This month the interest rate may be changed and receive a new value within the range of 1.50% to 2.00%, but it is most likely that the rate will be 1.75%, with a change of -0.25 points.
Canada interest rate forecast for May 2028. Starting at 1.75%. This month the interest rate may be changed and receive a new value within the range of 1.50% to 2.00%, but it is most likely that the rate will be 1.75%, no change.
BOC rate prediction for June 2028. Starting at 1.75%. This month the interest rate may be changed and receive a new value within the range of 1.25% to 1.75%, but it is most likely that the rate will be 1.50%, with a change of -0.25 points.
Canada interest rate forecast for July 2028. Starting at 1.50%. This month the interest rate may be changed and receive a new value within the range of 0.75% to 1.50%, but it is most likely that the rate will be 1.00%, with a change of -0.50 points.
BOC rate prediction for August 2028. Starting at 1.00%. This month the interest rate may be changed and receive a new value within the range of 0.75% to 1.25%, but it is most likely that the rate will be 1.00%, no change.
AIR CANADA STOCK PRICE FORECAST 2026, 2027, 2028.
Canada interest rate forecast for September 2028. Starting at 1.00%. This month the interest rate may be changed and receive a new value within the range of 0.25% to 1.00%, but it is most likely that the rate will be 0.50%, with a change of -0.50 points.
The forecast is updated on daily basis.
Canada Interest Rate: Key Drivers, Historical Trends, and Outlook
What Determines the Bank of Canada Interest Rate
The Bank of Canada (BoC) interest rate, often referred to as the policy rate or overnight rate, is influenced by several key economic and financial factors. The central bank adjusts rates to achieve its primary goals of controlling inflation and supporting economic growth. Key drivers include:
1. Inflation
Inflation is the primary determinant of BoC policy decisions. When inflation exceeds the BoC’s target range (usually 1–3%), the bank may raise interest rates to reduce consumer spending and cool the economy. Conversely, low inflation may prompt the BoC to lower rates to stimulate spending and investment.
2. Economic Growth and Employment
The BoC monitors GDP growth and employment levels. Strong growth and low unemployment can create upward pressure on inflation, leading to higher interest rates. In contrast, slow growth or high unemployment may result in rate cuts to encourage borrowing and economic activity.
3. Commodity Prices
Canada is a major exporter of commodities, particularly oil. Rising commodity prices can boost income and inflation, which may prompt higher rates. Falling prices can weaken the economy and reduce inflationary pressure, leading to lower rates.
4. Exchange Rates
The value of the Canadian dollar (CAD) relative to other currencies affects trade and inflation. A strong CAD can reduce import costs and limit inflation, possibly reducing the need for higher rates. A weak CAD can increase import prices and inflationary pressures, potentially prompting rate hikes.
5. Global Economic Conditions
Global trends, including U.S. monetary policy, international trade conditions, and financial market stability, influence BoC decisions. For example, aggressive rate hikes by the U.S. Federal Reserve can affect Canadian capital flows and exchange rates, indirectly influencing the BoC’s policy.
How These Factors Have Evolved
Over the past 10–15 years, the influence of these factors has shifted with economic cycles and global events:
- The 2008–2009 global financial crisis led the BoC to sharply cut rates to stimulate the economy.
- Commodity price fluctuations, especially oil, have periodically influenced inflation and rates.
- Post-2015 economic recovery allowed gradual rate increases, but slow global growth and low inflation have often limited aggressive hikes.
- Recent years have seen rates adjusted in response to pandemic-related shocks, supply chain disruptions, and inflationary pressures from global energy and food prices.
Historical Trends: Bank of Canada Interest Rate (Past 10–15 Years)
- 2008–2009: Rates cut from ~4.5% to 0.25% during the financial crisis.
- 2010–2015: Rates gradually increased as the economy recovered, stabilizing around 1–1.25%.
- 2015–2019: Gradual hikes to 1.75% as inflation and economic activity strengthened.
- 2020: Rates cut to 0.25% in response to the COVID-19 pandemic.
- 2021–2023: Rates remained low initially, then gradually increased in response to rising inflation, reaching ~5% by 2023.
Prospects for BoC Interest Rate in the Coming Years
- Inflation Outlook: If inflation moderates toward the target range, the BoC may hold or slightly reduce rates.
- Economic Growth: Strong GDP growth may support maintaining higher rates, while a slowdown could prompt cuts.
- Global Developments: U.S. monetary policy, commodity prices, and global market conditions may influence BoC decisions.
- Exchange Rates: A strong CAD may reduce inflationary pressure, allowing for rate cuts; a weak CAD could have the opposite effect.
Risks & Uncertainties
- Unexpected inflation spikes due to energy or food prices.
- Global economic slowdowns or financial crises impacting Canada’s economy.
- Sharp commodity price changes affecting GDP and inflation.
- Policy missteps or delays in response to changing economic conditions.
The Bank of Canada interest rate is influenced by inflation, economic growth, employment, commodity prices,
Looking forward, BoC decisions will depend on inflation trends, economic growth, and external factors. Careful monitoring of these drivers is essential for understanding the likely trajectory of Canadian interest rates in the coming years.
