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: backgrounder
| Date | Target (%) | Change (%) |
|---|---|---|
| 4 December 2012 |
1.00 |
--- |
| 23 October 2012 |
1.00 |
--- |
| 5 September 2012 |
1.00 |
--- |
| 17 July 2012 |
1.00 |
--- |
| 5 June 2012 |
1.00 |
--- |
| 17 April 2012 |
1.00 |
--- |
| 8 March 2012 |
1.00 |
--- |
| 17 January 2012 |
1.00 |
--- |
| 6 December 2011 |
1.00 |
--- |
| 25 October 2011 | 1.00 | --- |
| More data | ||
