The benchmark interest rate in Canada was last recorded at 2.50 percent. This dataset provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

More than ************* mortgage loans are projected to be affected by the increasing mortgage interest rates in Canada by 2025. About *********** of these mortgages are projected to be up for renewal in 2024. These loans were taken out at a time when interest rates were much lower, meaning that homeowners will be affected by a notable increase in their monthly payments.

Canada CA: Long-Term Interest Rate: Government Bonds data was reported at 2.900 % in 2026. This records a decrease from the previous number of 3.018 % for 2025. Canada CA: Long-Term Interest Rate: Government Bonds data is updated yearly, averaging 5.541 % from Dec 1960 (Median) to 2026, with 67 observations. The data reached an all-time high of 14.989 % in 1981 and a record low of 0.753 % in 2020. Canada CA: Long-Term Interest Rate: Government Bonds data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Canada – Table CA.OECD.EO: Interest Rate: Forecast: OECD Member: Annual. IRL - Long-term interest rate on government bonds; Yield 10-year federal government benchmark bond)

Key information about Canada Long Term Interest Rate

• Canada Government Benchmark Bonds Yield: Month End: 10 Years was reported at 2.90 % pa in Feb 2025, compared with 3.07 % pa in the previous month.
• Canada Long Term Interest Rate data is updated monthly, available from Jan 1993 to Feb 2025.
• The data reached an all-time high of 9.28 % pa in Jun 1994 and a record low of 0.46 % pa in Jul 2020.
• Long Term Interest Rate is reported by reported by Bank of Canada.

• In the latest reports, Canada Short Term Interest Rate: Month End: Treasury Bills Yield: 3 Months was reported at 2.82 % pa in Feb 2025.
• The cash rate (Policy Rate: Month End: Overnight Target Rate) was set at 3.00 % pa in Feb 2025.
• Canada Exchange Rate against USD averaged 1.33 (USD/CAD) in Jun 2023.

Canada's inflation rate experienced significant fluctuations from 2018 to 2025. Inflation peaked at *** percent in June 2022 before steadily declining to *** percent by December 2024. In early 2025, inflation began to increase again, rising to *** percent in February, and dropping to *** percent in March. In response to rising inflation between 2020 and 2022, the Bank of Canada implemented aggressive interest rate hikes. The bank rate reached a maximum of **** percent in July 2023 and remained stable until June 2024. As inflationary pressures eased in the second half of 2024, the central bank reduced interest rates to *** percent in December 2024. In 2025, the bank rate witnessed two cuts, standing at ***** percent in June 2025. This pattern reflected broader global economic trends, with most advanced and emerging economies experiencing similar inflationary challenges and monetary policy adjustments. Global context of inflation and interest rates The Canadian experience aligns with the broader international trend of central banks raising policy rates to combat inflation. Between 2021 and 2023, nearly all advanced and emerging economies increased their central bank rates. However, a shift occurred in the latter half of 2024, with many countries, including Canada, beginning to lower rates. This change suggests a new phase in the global economic cycle and monetary policy approach. Notably, among surveyed countries, Russia maintained the highest interest rate in early 2025, while Japan had the lowest rate. Comparison with the United States The United States experienced a similar trajectory in inflation and interest rates. U.S. inflation peaked at *** percent in June 2022, slightly higher than Canada's peak. The Federal Reserve responded with a series of rate hikes, reaching **** percent in August 2023. This rate remained unchanged until September 2024, when the first cut since September 2021 was implemented. In contrast, Canada's bank rate peaked at **** percent and began decreasing earlier, with cuts in June and July 2024. These differences highlight the nuanced approaches of central banks in managing their respective economies amid global inflationary pressures.

Rates have been trending downward in Canada for the last five years. The ebbs and flows are caused by changes in Canada’s bond yields (driven by Canadians economic developments and international rate movements, particularly U.S. rate fluctuations) and the overnight rate (which is set by the Bank of Canada). As of August 2022, there has been a 225 bps increase in the prime rate, since beginning of year 2022, from 2.45% to 4.70% as of Aug 24th 2022. The following are the historical conventional mortgage rates offered by the 6 major chartered banks in Canada in the past 20 years.

Bank Lending Rate in Canada remained unchanged at 4.95 percent in August. This dataset provides - Canada Prime Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

FocusEconomics' economic data is provided by official state statistical reporting agencies as well as our global network of leading banks, think tanks and consultancies. Our datasets provide not only historical data, but also Consensus Forecasts and individual forecasts from the aformentioned global network of economic analysts. This includes the latest forecasts as well as historical forecasts going back to 2010. Our global network consists of over 1000 world-renowned economic analysts from which we calculate our Consensus Forecasts. In this specific dataset you will find economic data for Canada Interest Rate.

Canada CA: Short-Term Interest Rate data was reported at 2.824 % in 2026. This records a decrease from the previous number of 3.011 % for 2025. Canada CA: Short-Term Interest Rate data is updated yearly, averaging 4.915 % from Dec 1960 (Median) to 2026, with 67 observations. The data reached an all-time high of 18.376 % in 1981 and a record low of 0.209 % in 2021. Canada CA: Short-Term Interest Rate data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Canada – Table CA.OECD.EO: Interest Rate: Forecast: OECD Member: Annual. IRS - Short-term interest rate

In July 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In the first half of 2025, Russia maintained the highest interest rate at 18 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at 0 percent in July 2025. In contrast, Russia maintained a high inflation rate of 8.8 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Evaluate Canada’s best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms. Rates are based on an average mortgage of $300,000

Deposit Interest Rate in Canada remained unchanged at 4.91 percent on Wednesday April 10. This dataset includes a chart with historical data for Deposit Interest Rate in Canada.

The Canadian housing market, particularly in major urban centers, has experienced a prolonged period of rapid price appreciation, driven by factors such as low interest rates, strong population growth, and limited supply. According to the Canada Mortgage and Housing Corporation (CMHC), the national average house price rose by more than 50% between 2020 and 2022, with prices in some major cities, such as Toronto and Vancouver, increasing by even more. This rapid price growth has made it increasingly difficult for many Canadians to afford a home, especially in the country's most desirable markets. However, the Canadian housing market is starting to show signs of cooling in 2023, as rising interest rates and stricter mortgage lending rules from the government begin to take effect. The CMHC predicts that the national average house price will decline by 7.6% in 2023, with prices in some markets, such as Toronto and Vancouver, expected to fall by even more. This cooling is expected to continue in 2024, with the CMHC predicting a further decline in the national average house price of 3.2%. The long-term outlook for the Canadian housing market is more uncertain, but the CMHC expects that prices will continue to rise, albeit at a more moderate pace. The Canadian housing market is one of the most expensive in the world, with prices in major cities like Toronto and Vancouver soaring to record highs in recent years. This has led to a growing concern about affordability, as many Canadians are being priced out of the market. Key drivers for this market are: Increasing Adoption of Remote and Hybrid Work Model. Potential restraints include: Lack of Privacy. Notable trends are: Pandemic Accelerated Luxury Home Sales in Major Canadian Markets.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

Canada CA: Short-Term Interest Rate: Single Hit Scenario data was reported at 0.400 % in 2021. This records a decrease from the previous number of 0.715 % for 2020. Canada CA: Short-Term Interest Rate: Single Hit Scenario data is updated yearly, averaging 5.009 % from Dec 1960 (Median) to 2021, with 62 observations. The data reached an all-time high of 18.376 % in 1981 and a record low of 0.400 % in 2021. Canada CA: Short-Term Interest Rate: Single Hit Scenario data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Canada – Table CA.OECD.EO: Interest Rate: Forecast: OECD Member: Annual. IRS - Short-term interest rate Short-term interest:https://stats.oecd.org/glossary/detail.asp?ID=1394

Inflation Rate in Canada increased to 1.90 percent in August from 1.70 percent in July of 2025. This dataset provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The statistic shows the average inflation rate in Canada from 1987 to 2024, with projections up until 2030. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2022, the average inflation rate in Canada was approximately 6.8 percent compared to the previous year. For comparison, inflation in India amounted to 5.56 percent that same year. Inflation in Canada In general, the inflation rate in Canada follows a global trend of decreasing inflation rates since 2011, with the lowest slump expected to occur during 2015, but forecasts show an increase over the following few years. Additionally, Canada's inflation rate is in quite good shape compared to the rest of the world. While oil and gas prices have dropped in Canada much like they have around the world, food and housing prices in Canada have been increasing. This has helped to offset some of the impact of dropping oil and gas prices and the effect this has had on Canada´s inflation rate. The annual consumer price index of food and non-alcoholic beverages in Canada has been steadily increasing over the last decade. The same is true for housing and other price indexes for the country. In general there is some confidence that the inflation rate will not stay this low for long, it is expected to return to a comfortable 2 percent by 2017 if estimates are correct.

Canada CA: Long-Term Interest Rate: Government Bonds: Single Hit Scenario data was reported at 1.100 % in 2021. This records a decrease from the previous number of 1.127 % for 2020. Canada CA: Long-Term Interest Rate: Government Bonds: Single Hit Scenario data is updated yearly, averaging 5.912 % from Dec 1960 (Median) to 2021, with 62 observations. The data reached an all-time high of 14.989 % in 1981 and a record low of 1.100 % in 2021. Canada CA: Long-Term Interest Rate: Government Bonds: Single Hit Scenario data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Canada – Table CA.OECD.EO: Interest Rate: Forecast: OECD Member: Annual. IRL - Long-term interest rate on government bonds; Yield 10-year federal government benchmark bond)

The high interest rate environment experienced over the five years to 2025, along with overall economic growth, has benefitted the Commercial Banking industry in Canada. Banks have done an exceptional job diversifying revenue streams, due to higher interest rates and despite increasing regulations. The industry primarily generates revenue through interest income sources, such as business loans and mortgages, but it also generates income through noninterest sources, which include fees on a variety of services and commissions. Industry revenue has been growing at a CAGR of 13.9% to $490.3 billion over the past five years, with an expected decrease of 0.3% in 2025 alone. In addition, profit, measured as earnings before interest and taxes, has climbed over the past five years and will comprise 31.1% of revenue in the current year. Industry revenue generated by interest income sources depends on demand for loans by consumers and the interest banks can charge on the capital they lend. Therefore, high interest rates have enabled banks to increasingly charge for loans. However, the recent rate cuts in the latter part of the period have limited the price banks can charge for loans, hindering the interest income from these loans, although, with lower rates, commercial banks are anticipated to encounter growing loan volumes. Also, technological innovations have disrupted traditional banking features. The growing trends of online and mobile banking have increased customer engagement and loyalty, which has further aided the industry's expansion. Over the five years to 2030, projected interest rate declines and improvements in corporate profit are still anticipated to boost interest income from lending products. However, the remarkable debt levels of Canadian households make it increasingly likely that a period of deleveraging will begin over the next five years. Quicker growth rates in household debt and consumer spending are expected to increase interest income. In addition, improving macroeconomic conditions, such as unemployment and private investment, are expected to further boost revenue. Nonetheless, industry revenue is forecast to grow at a CAGR of 1.0% to $516.5 billion over the five years to 2030.

Loan administration and cheque cashing services endured mixed results amid economic volatility during the pandemic and the continued effects of high interest rates on Canadian businesses and consumers alike. Canadian consumers' appetite for debt has boosted the industry by sustaining demand for consumer financing, mortgages and cash services for businesses. However, sharp economic volatility in 2020 forced consumers and businesses to shift their borrowing preferences away from traditional banking clients, causing revenue to spike in 2020. While a temporary economic recovery in 2021 caused consumers to revert back to traditional financial norms, the effects of high inflation and interest rates severely influenced how clients pursue their financial goals. Broader growth in core loan vehicles, such as auto loans and mortgages, in 2024 further cemented administrator demand. Nonetheless, continued competition from digital alternatives and external competitors curtailed larger rates of growth, with revenue rising an annualized 3.2% to an estimated $1.8 billion through the end of 2024, including an estimated 2.1% boost in 2024 alone. Profit followed a similar trend, as higher rates of loan demand and lowering of operational expenses facilitated greater profitability for administrators. Canadian GDP growth has largely been driven by trends in consumption. As interest rates spiked in 2023, Canadians have had to alter their spending habits and patterns. The continued upward push of Canadians living paycheck to paycheck further discouraged demand for traditional banks and provided a more diversified revenue stream among younger and underbanked consumers. This reliance on debt to make monthly payments also provides administrators with steady demand for their payday loan offerings. But in an environment where most payday loans made are to consumers with a higher probability of default, mounting household debt runs the risk of insolvency and industry contraction. Additionally, mounting external competition from digital payment platforms undermined administrator demand, with consumers having more opportunities via digital platforms to meet their digital needs. Moving forward, loan administration and cheque cashing services will continue to benefit from uncertainty surrounding interest rates and general economic shakiness among downstream customers. However, anticipated changes in regulations surrounding payday loans and interest rates will enhance compliance costs and curtail profitability. Lastly, increased external competition from commercial banks, credit unions and emerging financial technology companies via payment platforms like Zelle and Venmo will likely put downward pressure on niche services such as cheque cashing, money order issuance, travellers' cheque issuance and payday loans. Revenue is expected to fall an annualized 2.4% to an estimated $1.6 billion through the end of 2029.