Bank of Canada

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Schedule of key interest rate announcements and publications

2006

January
24
Interest rate announcement

26
Monetary Policy Report Update

February
---

March
7
Interest rate announcement

April
25
Interest rate announcement

27
Monetary Policy Report

May
24
Interest rate announcement

June
---

July
11
Interest rate announcement

13
Monetary Policy Report Update

August
---

September
6
Interest rate announcement

October
17
Interest rate announcement

19
Monetary Policy Report

November
---

December
5
Interest rate announcement

Monetary Policy

Key interest rate: target for the overnight rate

The target for the overnight rate

The Bank carries out monetary policy by influencing short-term interest rates. It does this by raising and lowering the target for the overnight rate.

The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or "overnight") funds among themselves; the Bank sets a target level for that rate. This target for the overnight rate is often referred to as the Bank's key interest rate or key policy rate.

Changes in the target for the overnight rate influence other interest rates, such as those for consumer loans and mortgages. They can also affect the exchange rate of the Canadian dollar.

In November 2000, the Bank introduced a system of eight "fixed" dates each year on which it announces whether or not it will change the key policy rate (see Schedule, at right.)

More information: fact sheet

Target for the overnight rate, recent data


Date Target (%) Change (%)
24 May 2006 4.25 +0.25
25 April 2006 4.00 +0.25
7 March 2006 3.75 +0.25
24 January 2006 3.50 +0.25
6 December 2005 3.25 +0.25
18 October 2005 3.00 +0.25
7 September 2005 2.75 +0.25
12 July 2005 2.50 ---
25 May 2005 2.50 ---
12 April 2005 2.50 ---
1 March 2005 2.50 ---
25 January 2005 2.50 ---
More data

Implementation of Fixed Announcement Dates:

Information paper:
A new system of fixed dates for announcing changes to the Bank Rate (2000)

Consultation results:
Summary of consultation results

Monetary policy implementation/LVTS-related
Operating band, settlement balances, special operations, etc.