These data provide additional perspectives on trends and developments in Canadian credit markets.
Note: The Financial Conditions Index (FCI) has been discontinued. The FCI was introduced in April 2009, during a period of severe financial market dislocation, as a summary measure of overall Canadian financial conditions combining data from several relevant markets. At the time of its introduction, the Bank emphasized that such an index needed to be interpreted with caution, given the inherent difficulty of quantifying the effects of changes in financial variables on the real economy and the short span of some of the data used. Since that time, the FCI's value as an accurate depiction of financial conditions has diminished to the point where it risks being misinterpreted. Moreover, this index misrepresents the Bank's approach to the ongoing assessment of financial conditions, which is based on a much wider set of information from a variety of sources. Other detailed financial indicators can be found below; further, the Bank regularly provides a comprehensive assessment of financial conditions in Canada, as well as globally, in its quarterly Monetary Policy Report.
Housing Affordability Index
The Bank of Canada housing affordability index is meant to measure the share of disposable income that a representative household would put toward housing-related expenses. Learn more.
SLOS Business-Lending Conditions and BOS Availability of Credit
This graph shows the results of two survey questions: the Senior Loan Officer Survey (SLOS), which collects information on the business-lending practices of Canadian financial institutions, and the Business Outlook Survey (BOS), which gathers the perspectives of senior management at firms whose businesses reflect the composition of Canada's gross domestic product.
The SLOS "business-lending conditions" indicator shows the difference between the weighted percentage of financial institutions reporting tighter credit conditions and the weighted percentage reporting easier credit conditions in the preceding 3 months. The BOS "availability of credit" indicator shows the percentage of firms reporting tighter minus the percentage reporting easier terms and conditions for obtaining financing compared with the previous 3 months.
Thus, for both measures, a positive balance of opinion implies a net tightening in credit conditions.
Measures of Wholesale Bank Funding CostsThis chart shows the 3-month Canadian Dollar Offered Rate (CDOR), 5-year debt swapped into 3-month floating-rate debt, and the 3-month overnight index swap (OIS) rate. The 3-month CDOR is the average bid-side rate for Canadian bankers' acceptances determined daily from a survey of market makers and can be used as a proxy for the cost of 3-month bank funding. Five-year debt swapped into 3-month floating rate debt is an indicator of the rate for senior deposit notes, and provides an indication of the longer-term cost of bank funding. The level shift in this series on 22 March 2012 is driven by a change in the reference bonds used to calculate the 5-year bank debt spreads, rather than an increase in bank funding costs.The 3-month OIS rate represents the expected overnight interest rate over the 3-month period and can be used as a point of reference to compare the two measures of the cost of wholesale bank funding.
Trends in Key Interest Rates
This table shows changes in key interest rates.
|Overnight rate||Prime Rate||Estimated variable mortgage rate||Posted 5-year mortgage rate||Three-month bankers' acceptances||Long-term corporate bond rate||Weekly effective household interest rate (1)||Weekly effective business interest rate (2)|
|18 October 2007||4.50||6.25||5.61||7.23||4.85||5.41||6.32||6.03|
|6 December 2007||4.25||6.00||5.65||7.37||4.70||5.36||6.41||6.02|
|24 January 2008||4.00||5.75||5.50||7.49||4.06||5.30||6.37||5.78|
|24 April 2008||3.00||4.75||4.65||6.99||3.23||5.32||5.70||5.31|
|17 July 2008||3.00||4.75||4.20||7.09||3.29||5.48||5.39||5.24|
|23 October 2008||2.25||4.00||5.29||7.20||2.68||5.99||5.60||5.86|
|11 December 2008||1.50||3.50||5.00||6.89||1.77||6.04||5.23||5.76|
|22 January 2009||1.00||3.00||4.33||6.73||1.06||5.90||4.64||5.25|
|5 March 2009||0.50||2.50||3.80||5.79||0.69||5.86||4.28||5.01|
|23 April 2009||0.25||2.25||3.26||5.43||0.46||5.32||3.83||4.24|
|8 June 2009||0.25||2.25||2.85||5.42||0.43||4.83||3.60||3.73|
|23 July 2009||0.25||2.25||2.75||5.85||0.44||4.54||3.75||3.42|
|14 September 2009||0.25||2.25||2.55||5.62||0.43||4.08||3.62||3.20|
|22 October 2009||0.25||2.25||2.35||5.78||0.43||4.06||3.54||3.12|
|10 December 2009||0.25||2.25||2.16||5.59||0.44||3.89||3.49||3.00|
|21 January 2010||0.25||2.25||2.15||5.49||0.44||3.72||3.50||2.98|
|22 April 2010||0.25||2.25||1.75||5.93||0.70||4.26||3.65||3.11|
|22 July 2010||0.75||2.75||1.90||5.79||1.03||3.96||3.51||3.26|
|20 October 2010||1.00||3.00||2.35||5.32||1.28||3.57||3.68||3.31|
|19 January 2011||1.00||3.00||2.30||5.19||1.30||3.94||3.71||3.50|
|13 April 2011||1.00||3.00||2.25||5.69||1.30||4.05||3.75||3.57|
|20 July 2011||1.00||3.00||2.25||5.49||1.30||3.66||3.62||3.36|
|26 October 2011||1.00||3.00||2.97||5.29||1.28||3.70||3.68||3.41|
|18 January 2012||1.00||3.00||3.00||5.29||1.28||3.37||3.69||3.29|
|18 April 2012||1.00||3.00||3.00||5.37||1.29||3.36||3.65||3.22|
|18 July 2012||1.00||3.00||3.00||5.20||1.30||3.03||3.61||3.14|
|24 October 2012||1.00||3.00||3.00||5.20||1.29||3.01||3.58||3.07|
|23 January 2013||1.00||3.00||3.00||5.20||1.29||3.02||3.56||3.08|
|18 April 2013||1.00||3.00||3.00||5.12||1.28||2.78||3.48||2.98|
|18 July 2013||1.00||3.00||2.75||5.12||1.28||3.15||3.61||3.25|
|23 October 2013||1.00||3.00||3.00||5.28||1.28||3.19||3.71||3.29|
|24 January 2014||1.00||3.00||3.00||5.22||1.27||3.00||3.64||3.14|
|17 April 2014||1.00||3.00||3.00||4.88||1.27||3.00||3.49||3.09|
|18 July 2014||1.00||3.00||3.00||4.88||1.27||2.88||3.37||3.01|
|24 October 2014||1.00||3.00||3.00||4.88||1.27||2.93||3.34||3.04|
|23 January 2015||0.75||3.00||3.00||4.88||1.03||2.47||3.29||2.95|
|17 April 2015||0.75||2.85||2.85||4.67||1.00||2.45||3.11||2.76|
|17 July 2015||0.50||2.70||2.72||4.67||0.74||2.51||3.05||2.76|
|23 October 2015||0.50||2.70||2.70||4.67||0.80||2.84||3.03||2.94|
|22 January 2016||0.50||2.70||2.24||4.67||0.85||2.87||3.12||3.11|
|15 April 2016||0.50||2.70||2.28||4.67||0.92||2.80||3.06||2.99|
|15 July 2016||0.50||2.70||2.19||4.66||0.88||2.65||3.00||2.77|
Weekly Effective Interest RatesThe effective interest rate for households is a weighted-average of various mortgage and consumer credit interest rates. The weights are derived from residential mortgage and consumer credit data, adjusted for additional information provided by financial institutions. The effective interest rate for businesses is a weighted-average borrowing rate for new lending to non-financial businesses, estimated as a function of bank and market interest rates. The weights are derived from business credit data. Learn more.