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New Lending Services Price Index, third quarter 2017

Released: 2018-01-12

New Lending Services Price Index

Third quarter 2017

-5.9% decrease

(quarterly change)

The New Lending Services Price Index decreased 5.9% in the third quarter, following a 2.6% decline the previous quarter.

The Bank of Canada raised the overnight rate twice during the third quarter, from 0.5% to 1.0%. Major banks followed these rate increases by raising their prime rates. Higher yields on Government of Canada securities, while partially offset by higher lending rates, brought the interest rate spreads down for all types of new loans covered by the index. Individual loans, and fixed-rate business loans for a term of less than one year were the main drivers in the decrease of the overall index.

The index was down 10.0% in the third quarter compared with the same quarter in 2016.

Chart 1  Chart 1: New Lending Services Price Index
New Lending Services Price Index

  Note to readers

The New Lending Services Price Index (NLSPI) is not an index of loan rates paid by consumers and businesses, but represents the change in the price of service. Prices represent the difference between annual percentage rates for new loan products and averages of yields on financial market instruments. The variables used to calculate the prices are weighted annual percentage rates for new lending services, funds advanced by product, and market rates.

New lending services include newly issued funds for personal loans, lines of credit, mortgage loans, business loans and leases. These data are combined with other data to estimate a price for new lending activity. Lending is one of the many services provided by the banking industry and this is the first in a suite of financial service indexes to be published. This index will provide better estimates of the real output, productivity and price change of financial services in Canada.

With each release, data for the previous quarter may have been revised. The series is also subject to an annual revision with the release of second quarter data of the following reference year. The NLSPI is a monthly index that is disseminated on a quarterly basis. The index is not seasonally adjusted. Data are available at the national level only.

For a more detailed explanation of the methodology, see the NLSPI  Methodology Summary Document.

Infographic: Producer Price Indexes at a Glance

The infographic "Producer Price Indexes at a Glance," which is part of Statistics Canada — Infographics (Catalogue number11-627-M), demonstrates how producer price indexes for goods and services are calculated and why they are important for the Canadian economy.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; or Media Relations (613-951-4636;

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