Not April 2010 but maybe….
So on Tuesday morning April 2010, the Bank of Canada made the statement. Their key overnight rate was not going to change this month (i.e. for May). However, they also said this might be the last month in 2010 with no change.
In response to the sharp, synchronous global recession, the Bank lowered its target rate rapidly over the course of 2008 and early 2009 to its lowest possible level. With its conditional commitment introduced in April 2009, the Bank also provided exceptional guidance on the likely path of its target rate. This unconventional policy provided considerable additional stimulus during a period of very weak economic conditions and major downside risks to the global and Canadian economies. With recent improvements in the economic outlook, the need for such extraordinary policy is now passing, and it is appropriate to begin to lessen the degree of monetary stimulus. The extent and timing will depend on the outlook for economic activity and inflation, and will be consistent with achieving the 2 per cent inflation target.
That translates to, rates will be going up soon. I feel like the Priest from War of the Worlds, See What did I tell you?. However, the days of effectively getting money for free are going to go away real soon (read next month). You can already see that with the banks raising their interest rates in reaction to this possible interest rate hike.
This will also mean a much higher Canadian Dollar, unless the Fed in the U.S. raises their rates as well, which is less likely. Time to buy American for a while. Great deals to be had across the border.
Interest rates have increased in Ontario. The HST in Ontario is also creating an impactful situation. These factors are going to make for an interesting consumer reaction for the summer months. I look forward to the letters to the editor with much glee and excitement.
📈 Bank of Canada Overnight Interest Rate (2005–2025)
🔍 Key Highlights:
- 2005–2007: Rates hovered around 2.75% to 4.50%, reflecting a stable economic period.
- 2008–2009: In response to the global financial crisis, the Bank of Canada slashed rates to a historic low of 0.25%.
- 2010–2018: Gradual increases brought rates up to 1.75% by late 2018.
- 2020: The COVID-19 pandemic prompted a rapid reduction back to 0.25% to support the economy.
- 2022–2023: To combat rising inflation, rates were increased sharply, reaching 5.00% by mid-2023.
- 2024–2025: As inflation pressures eased, the Bank began lowering rates, settling at 2.75% by April 2025.
For a detailed breakdown and the most recent data, you can visit the Bank of Canada's official Interest Rates page.
2010 Interest Rate Articles
- Interest Rates Going Nowhere For January 2010
- Bank of Canada: No Rate Hikes (March 2010)
- Interest Rates, What Did I tell You? April 2010
- June 2010 When Interest Rates Doubled or Rates Up 100%!
- Interest Rates Sky Rocket September 2010
- October 2010 Rates remained the same.
- December 2010 Money is still too loose
- January 2011 No Rate Change but Promises of BIG changes Coming
