The benchmark interest rate in Canada was last recorded at 2.75 percent. This dataset provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

This table contains 38 series, with data starting from 1957 (not all combinations necessarily have data for all years). This table contains data described by the following dimensions (Not all combinations are available): Geography (1 item: Canada), Rates (38 items: Bank rate; Chartered bank administered interest rates - prime business; Chartered bank - consumer loan rate; Forward premium or discount (-), United States dollars in Canada: 1 month; ...).

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.

Government Benchmark Bond are rates based on actual mid-market closing yields of selected Canada bond issues that mature approximately in the indicated term areas.


Related information about Canada Long Term Interest Rate

• 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.

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

In June 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 20 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 0.1 percent in June 2025. In contrast, Russia maintained a high inflation rate of 9.4 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.

Interactive chart displaying a two-year forecast for the Bank of Canada Target Rate and the Government of Canada 5-year Bond yield, including high, likely, and low rate scenarios.

Table displaying real-time high, low, and typical posted mortgage rates for variable, 3-year fixed, and 5-year fixed terms in Canada.

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.

Interactive chart displaying a two-year forecast for 5-year variable and 5-year fixed mortgage rates, including high, likely, and low rate scenarios across two tabs.

This table contains 39 series, with data for starting from 1991 (not all combinations necessarily have data for all years). This table contains data described by the following dimensions (Not all combinations are available): Geography (1 item: Canada); Financial market statistics (39 items: Government of Canada Treasury Bills, 1-month (composite rates); Government of Canada Treasury Bills, 2-month (composite rates); Government of Canada Treasury Bills, 3-month (composite rates);Government of Canada Treasury Bills, 6-month (composite rates); ...).

Bank of Canada announces its decisions on interest rate eight times a year. It is one of the key events influencing the Canadian dollar quotes. The decision is made depending on the current economic

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

In 2025, mortgage interest rates in Canada decreased. The five-year insured fixed mortgage interest rate as of May 2025 stood at **** percent, making it the most affordable mortgage type. Meanwhile, the insured mortgage rate fixed for under one year was the highest, at **** percent.

Dataset - Bank of Canada in the news

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.

Key information about Canada Real Effective Exchange Rate

• Canada Real Effective Exchange Rate (REER: 2005=100: Month Avg: Canada) was 88.4 in Dec 2024, compared with the number of 90.0 in the previous month.
• Canada Real Effective Exchange Rate data is updated monthly and averaged 116.5 from Jan 1999 to Dec 2024.
• The data reached an all-time high of 116.5 in Oct 2007 and a record low of 80.5 in Nov 2001.

CEIC generates Real Effective Exchange Rate Index with base 2005=100. The Bank of Canada provides Real Effective Exchange Rate Index with base 1999=100. CPI is used as a deflator. An increase in REER indicates reduced competitiveness for the reporting economy.


Related information about Canada Real Effective Exchange Rate

• In the latest reports, Canada Short Term Interest Rate: Month End: Treasury Bills Yield: 3 Months was reported at 2.9 % pa in Jan 2025.
• The cash rate (Policy Rate: Month End: Overnight Target Rate) was set at 3.0 % pa in Jan 2025.
• Canada Exchange Rate against USD averaged 1.3 (USD/CAD) in Jun 2023.

We examine the relationship between concentration and price dispersion using variation induced by a merger in the Canadian mortgage market. Since interest rates are determined through a search and negotiation process, consolidation weakens consumers' bargaining positions. We use reduced-form techniques to estimate the mergers' distributional impact, and show that competition benefits only consumers at the bottom and middle of the transaction price distribution, and that mergers reduce the dispersion of prices. We illustrate that these effects can be explained by the presence of search frictions, and that the average effect of mergers on rates underestimates the increase in market power.

Domestic demand for general-purpose machinery has increased overall during the current period, driven by a combination of economic and logistics factors. While manufacturers faced a sales decline in the first half of 2024, a rebound is anticipated in the second half as the Bank of Canada continues to lower interest rates, encouraging more capital investments. Despite these positive trends, input prices for key raw materials such as steel, aluminum and plastics remain elevated, affecting production costs and machinery prices, though a return to historical price levels is expected to benefit profit in 2024. Overall, the industry is expected to grow at a CAGR of 2.8% to reach $5.4 billion by 2024, including a projected 0.6% growth in 2024 alone. Exports, accounting for nearly 70% of industry revenue, have been a significant growth driver, with the United States being a major export destination. US fiscal and monetary policies, aimed at mitigating the pandemic's economic effects, impacted the market in 2020 but have since fueled demand through infrastructure projects like the Infrastructure Investment and Jobs Act. This act led to increased demand for construction-focused equipment from the US. The ongoing interplay of domestic recovery, input cost stabilization and foreign demand growth is shaping ongoing industry developments. The industry is poised for stable growth, projected at a 2.2% CAGR to reach $6.0 billion by 2029, supported by robust economic strategies and policies. The Canadian government's increased focus on population growth via immigration and the Bank of Canada's interest rate cuts from June 2024 will stimulate housing, transportation and consumer goods demand by making borrowing more affordable and encouraging investment. Additionally, strong US trade demand, buoyed by the USMCA and Federal Reserve interest rate cuts, will bolster machinery exports.

Key information about Canada Money Supply M2

• Canada Money Supply M2 was reported at 1,832.025 USD bn in Dec 2024
• This records a decrease from the previous number of 1,873.347 USD bn for Nov 2024
• Canada Money Supply M2 data is updated monthly, averaging 322.770 USD bn from Jan 1968 to Dec 2024, with 684 observations
• The data reached an all-time high of 1,915.151 USD bn in Sep 2024 and a record low of 23.469 USD bn in Jan 1968
• Canada Money Supply M2 data remains active status in CEIC and is reported by CEIC Data
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Money Supply M2: USD: Monthly: Seasonally Adjusted

CEIC converts monthly Money Supply M2 into USD. The Bank of Canada provides Money Supply M2 in local currency. The Federal Reserve Board period end market exchange rate is used for currency conversions.