The current Canada Prime rate is equal 4.45%.
Canada Prime rate forecast for 2026, 2027 and 2028
| Month | Open,% | Min-Max,% | Rate,% | Change |
| Aug | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| Sep | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| Oct | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| Nov | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| Dec | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| 2027 | ||||
| Jan | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| Feb | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| Mar | 4.45 | 4.20-4.70 | 4.45 | 0.00 |
| Apr | 4.45 | 3.95-4.45 | 4.20 | -0.25 |
| May | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| Jun | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| Jul | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| Aug | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| Sep | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| Oct | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| Nov | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| Dec | 4.20 | 3.95-4.45 | 4.20 | 0.00 |
| 2028 | ||||
| Jan | 4.20 | 3.70-4.20 | 3.95 | -0.25 |
| Feb | 3.95 | 3.70-4.20 | 3.95 | 0.00 |
| Mar | 3.95 | 3.70-4.20 | 3.95 | 0.00 |
| Apr | 3.95 | 2.70-3.95 | 2.95 | -1.00 |
| May | 2.95 | 2.70-3.20 | 2.95 | 0.00 |
| Jun | 2.95 | 2.70-3.20 | 2.95 | 0.00 |
| Jul | 2.95 | 2.70-3.20 | 2.95 | 0.00 |
Prime rate prediction for August 2026. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
Canada Prime rate forecast for September 2026. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
Prime rate prediction for October 2026. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
CANADA INTEREST RATE TODAY AND FORECAST 2026, 2027, 2028.
Federal Reserve interest rate Forecast 2026, 2027, 2028.
Canada Prime rate forecast for November 2026. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
Prime rate prediction for December 2026. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
Canada Prime rate forecast for January 2027. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
Prime rate prediction for February 2027. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
Canada Prime rate forecast for March 2027. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 4.20% to 4.70%, but it is most likely that the rate will be 4.45%, no change.
Prime rate prediction for April 2027. Starting at 4.45%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, with a change of -0.25 points.
Canada Prime rate forecast for May 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Prime rate prediction for June 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Canada Prime rate forecast for July 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Prime rate prediction for August 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Canada Prime rate forecast for September 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Prime rate prediction for October 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Canada Prime rate forecast for November 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Prime rate prediction for December 2027. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.95% to 4.45%, but it is most likely that the rate will be 4.20%, no change.
Canada Prime rate forecast for January 2028. Starting at 4.20%. This month the interest rate may be changed and receive a new value within the range of 3.70% to 4.20%, but it is most likely that the rate will be 3.95%, with a change of -0.25 points.
Prime rate prediction for February 2028. Starting at 3.95%. This month the interest rate may be changed and receive a new value within the range of 3.70% to 4.20%, but it is most likely that the rate will be 3.95%, no change.
Canada Prime rate forecast for March 2028. Starting at 3.95%. This month the interest rate may be changed and receive a new value within the range of 3.70% to 4.20%, but it is most likely that the rate will be 3.95%, no change.
Prime rate prediction for April 2028. Starting at 3.95%. This month the interest rate may be changed and receive a new value within the range of 2.70% to 3.95%, but it is most likely that the rate will be 2.95%, with a change of -1.00 points.
Canada Prime rate forecast for May 2028. Starting at 2.95%. This month the interest rate may be changed and receive a new value within the range of 2.70% to 3.20%, but it is most likely that the rate will be 2.95%, no change.
Prime rate prediction for June 2028. Starting at 2.95%. This month the interest rate may be changed and receive a new value within the range of 2.70% to 3.20%, but it is most likely that the rate will be 2.95%, no change.
AIR CANADA STOCK PRICE FORECAST 2026, 2027, 2028.
Canada Prime rate forecast for July 2028. Starting at 2.95%. This month the interest rate may be changed and receive a new value within the range of 2.70% to 3.20%, but it is most likely that the rate will be 2.95%, no change.
The forecast is updated on daily basis.
About Canada Prime Rate
Understanding the Difference Between BoC Rate and Prime Rate
Before diving into the factors that influence the Canada Prime Rate, it's important to understand the difference between the Bank of Canada interest rate and the Canada Prime Rate:
- BoC Interest Rate: The official overnight rate set by the Bank of Canada to control inflation and support economic growth. It is a policy tool and not the rate consumers pay directly.
- Canada Prime Rate: The rate at which banks lend to their most creditworthy clients. It serves as a benchmark for mortgages, loans, and lines of credit.
For clarity, the relationship can be expressed as:
Prime Rate ≈ BoC Rate + bank margin (~2–3% above the overnight rate)
What Determines the Canada Prime Rate
The Canada Prime Rate is the benchmark interest rate that major Canadian banks charge their most creditworthy customers. It is closely linked to the Bank of Canada (BoC) policy rate, but it also reflects banking sector conditions. The main factors influencing the prime rate include:
1. Bank of Canada Policy Rate
The prime rate is directly influenced by the BoC's overnight policy rate. When the BoC raises or lowers its rate, banks usually adjust their prime rates accordingly. This ensures that lending and borrowing rates in the economy respond to monetary policy.
2. Inflation and Economic Conditions
Banks consider inflation and overall economic growth when setting the prime rate. Higher inflation may prompt banks to raise rates to maintain margins and reduce risk, while low inflation or economic slowdown can lead to lower prime rates.
3. Bank Funding Costs
The cost for banks to borrow funds, including wholesale lending rates and deposits, influences the prime rate. Higher funding costs are typically passed on to borrowers through a higher prime rate.
4. Credit Risk and Lending Conditions
Changes in credit risk and lending conditions can affect the prime rate. If banks perceive higher risk in the economy or specific sectors, they may raise the rate to protect profitability.
5. Competitive Banking Environment
The prime rate is also influenced by competition among banks. If one bank lowers its prime rate to attract customers, others often follow to remain competitive.
Historical Trends: Canada Prime Rate (Past 10–15 Years)
- 2008–2009: Prime rate decreased sharply from ~6% to ~3% during the global financial crisis.
- 2010–2015: Rates remained relatively low, between 3% and 3.25%, reflecting moderate growth and low inflation.
- 2015–2019: Gradual increases aligned with BoC policy hikes, with prime reaching ~3.95% by 2019.
- 2020: COVID-19 pandemic led banks to lower prime rates to ~2.45% to support borrowing and economic activity.
- 2021–2023: Rates increased in response to rising inflation, reaching ~6.7% by 2023.
Prospects for Canada Prime Rate in the Coming Years
- Bank of Canada Policy: Changes in the BoC policy rate will continue to directly affect the prime rate.
- Inflation Trends: If inflation moderates toward the target range, banks may stabilize or slightly reduce the prime rate.
- Economic Growth: Strong growth supports higher prime rates, while economic slowdown may trigger reductions.
- Funding Costs and Competition: Changes in bank funding costs and competitive pressures may also influence the rate.
Risks & Uncertainties
- Unexpected inflationary spikes requiring tighter monetary policy.
- Economic slowdowns or recessions reducing borrowing demand.
- Volatility in financial markets affecting bank funding costs.
- Regulatory changes or shifts in banking competition.
The Canada Prime Rate is primarily influenced by the Bank of Canada policy rate, inflation, economic growth, bank funding costs, and competitive pressures. Over the past 10–15 years, the prime rate has fluctuated from historic lows near 2.45% to highs over 6%, reflecting economic cycles and monetary policy shifts.
Because Prime Rate ≈ BoC Rate + bank margin (~2–3%), understanding changes in the BoC rate is essential for anticipating lending costs. Looking ahead, the prime rate will closely follow BoC policy decisions, with potential adjustments based on inflation, growth, and banking sector conditions.
