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Bank of Canada Interest Rate Schedule 2023-2024

Last Updated: December 6, 2023

CURRENT OVERNIGHT INTEREST RATE: 5.00% (last updated December 6, 2023)

Here are what the Bank of Canada interest rate announcements are, when they happen in 2023 and their significance.

Highlights:

  • The Bank of Canada is responsible for setting the key policy rate and is the primary tool that the central bank uses to control inflation. This is the starting point for setting many interest rates in the economy. The Bank of Canada sets the policy rate to influence different aspects of the Canadian economy which include the exchange rate, consumer prices, bank interest rates and more.
  • The Bank of Canada follows a predetermined schedule of when they will have rate announcements.
 

Recent Bank of Canada interest rate announcements

 

What should I expect from a Bank of Canada announcement?

The Bank of Canada is responsible for the nation’s monetary policy which includes setting the key policy rate (target overnight rate). The announcements will let the public know if there is a change made to this rate by the Bank of Canada. The prime rate is influenced by the Bank of Canada’s rate announcement, and is what major banks and financial institutions in Canada use to set interest rates for loans and lines of credit which also include variable rate mortgages. So when the Bank of Canada rate changes, mortgage rates will change accordingly.

When are the Bank of Canada interest rate announcements scheduled for 2023?

The Bank of Canada rate announcements are predetermined and follow a set schedule for the entire year.

Bank of Canada interest rate announcement schedule for 2023:

  • Wednesday, January 25, 2023
  • Wednesday, March 8, 2023
  • Wednesday, April 12, 2023
  • Wednesday, June 7, 2023
  • Wednesday, July 12, 2023
  • Wednesday, September 6, 2023
  • Wednesday, October 25, 2023
  • Wednesday, December 6, 2023
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When are the Bank of Canada interest rate announcements scheduled for 2024?

The Bank of Canada rate announcements are predetermined and follow a set schedule for the entire year.

 

Bank of Canada interest rate announcement schedule for 2024:

  • Wednesday, January 24, 2024 (next BoC announcement)
  • Wednesday, March 6, 2024
  • Wednesday, April 10, 2024
  • Wednesday, June 5, 2024
  • Wednesday, July 24, 2024
  • Wednesday, September 4, 2024
  • Wednesday, October 23, 2024
  • Wednesday, December 11, 2024

(Source: Bank of Canada)

 

What is the Canada interest rate forecast for 2023?

As of December 6th, the Bank of Canada interest rate is at 5.00%. The Bank of Canada will monitor the economy closely to determine future policy.

You can read more about the Canada interest rate forecast for 2023 here.

 

Bank of Canada’s historical interest rate changes 2021 to 2023

To better determine mortgage rate forecasts and understand how interest rates change over the years, it’s important to take into account historical trends. If you plan on entering the real estate market, it’s a good idea to understand how these changes will affect the housing market.

Date Target (%) Change (%)
December 6, 2023 5.00
October 25, 2023 5.00
September 6, 2023 5.00
July 12, 2023 5.00 +0.25
June 7, 2023 4.75 +0.25
April 12, 2023 4.50
March 8, 2023 4.50
January 25, 2023 4.50 +0.25
December 7, 2022 4.25 +0.50
October 26, 2022 3.75 +0.50
September 7, 2022 3.25 +0.75
July 13, 2022 2.50 +1.00
June 1, 2022 1.50 +0.50
April 13, 2022 1.00 +0.50
March 2, 2022 0.50 +0.25
January 26, 2022 0.25
December 8, 2021 0.25
October 27, 2021 0.25

(source: Bank of Canada)

Worried about the impact of rates your monthly payment?

Join Perch today to learn more about how interest rates impact your current mortgage payments and to speak with an advisor to explore options that could help you save on your monthly payment.

What is a monetary policy report?

A monetary policy report is a quarterly report of the Bank of Canada’s Governing council, and will present the Bank’s base-case projection for inflation and growth in the Canadian economy, and its assessment of risks. The main goal of monetary policy is to preserve the value of money by keeping inflation low, stable and predictable. This will give Canadians more confidence to make investment and spending decisions, encourage longer-term investment in the Canadian economy, and support sustained job creation and higher productivity. Our standard of living then improves as a result of this. The inflation-control target and the flexible exchange rate are the two main parts of Canada’s monetary policy framework. This framework helps make monetary policy actions readily understandable, and enables the Bank to demonstrate its accountability to Canadians.

 

Where can I find the Bank of Canada’s monetary policy reports?

These reports are released when the Bank of Canada announces their target overnight rate.

You can find the reports on the Bank of Canada’s website.

 

Why is it important to understand the Bank of Canada interest rate announcements?

If you are planning on entering the real estate market soon or are currently a homeowner, it’s important to follow along with the Bank of Canada’s rate announcements. These rate changes will have a direct impact on the housing market and housing affordability. You’ll be able to manage your expectations of the housing market better and make better decisions when it comes to your home ownership journey and budget.

For more information about Bank of Canada key terms, learn more here.

Alex Leduc

Alex Leduc

Alex Leduc is Founder and CEO at Perch. Prior to starting Perch, he worked in the real estate sector for 8 years in corporate finance, strategy and analytics roles. He is currently a Technical Advisory Committee Member of the Financial Services Regulatory Authority of Ontario (FSRA) and Co-Chair of the Canadian Lenders Association Mortgage Roundtable. Alex is a graduate of Ivey Business School from Western University and a CFA Charterholder. LinkedIn

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