Bank of Canada Policy Rate

## What this measures

The Bank of Canada's target for the overnight rate, the rate at which major banks lend to each other overnight. It is Canada's policy interest rate.

## Why it matters

It sets the floor for borrowing costs across the economy, including variable-rate mortgages and prime rates.

## How to read it

Changes happen on the Bank's eight scheduled decision dates a year. Compare with inflation: a rate below inflation is accommodative.

## What it does not say

It is a target, set by decision; it does not move with markets. This series starts in 2009 on Valet.

## Source

Bank of Canada, Valet API, series V39079 ("Target for the overnight rate"). Palanor pulls it from the Bank's Valet service every weekday. Source: Bank of Canada. Content obtained from the Bank of Canada website; changes are noted where Palanor computes from it.