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.

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); ...).

This table contains 71 series, with data starting from 1934 (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 items: Canada ...), Rates (71 items: Bank rate; last Tuesday or last Thursday; Bank rate; Chartered bank administered interest rates - prime business; Chartered bank - consumer loan rate ...).

Canada Government Benchmark Bonds Yield: Month End: 5 Years data was reported at 2.600 % pa in Feb 2025. This records a decrease from the previous number of 2.740 % pa for Jan 2025. Canada Government Benchmark Bonds Yield: Month End: 5 Years data is updated monthly, averaging 3.380 % pa from Jan 1993 (Median) to Feb 2025, with 386 observations. The data reached an all-time high of 9.050 % pa in Jan 1995 and a record low of 0.310 % pa in Jul 2020. Canada Government Benchmark Bonds Yield: Month End: 5 Years data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.M012: Government Bonds Yield. 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.

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.

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; ...).

Canada's inflation rate experienced significant fluctuations from 2018 to 2025. Inflation peaked at 8.1 percent in June 2022 before steadily declining to 1.9 percent by January 2025. 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 5.25 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 3.5 percent in December 2024. 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 9.1 percent in June 2022, slightly higher than Canada's peak. The Federal Reserve responded with a series of rate hikes, reaching 5.33 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 5.25 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.

Canada 5 Year Bond Yield was 2.77 percent on Wednesday March 26, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for Canada 5Y.

Canada 10Y Bond Yield was 3.16 percent on Wednesday March 26, according to over-the-counter interbank yield quotes for this government bond maturity. Canada 10-Year Government Bond Yield - values, historical data, forecasts and news - updated on March of 2025.

Canada Government Benchmark Bonds Yield: LW: 7 Years data was reported at 2.850 % pa in Feb 2025. This records a decrease from the previous number of 3.040 % pa for Jan 2025. Canada Government Benchmark Bonds Yield: LW: 7 Years data is updated monthly, averaging 2.905 % pa from Jan 1998 (Median) to Feb 2025, with 326 observations. The data reached an all-time high of 6.450 % pa in Jan 2000 and a record low of 0.350 % pa in Jul 2020. Canada Government Benchmark Bonds Yield: LW: 7 Years data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.M012: Government Bonds Yield. 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.

This table contains data described by the following dimensions (Not all combinations are available): Geography (1 items: Canada ...).

Canada Government Benchmark Bonds Yield: Month End: 2 Years data was reported at 2.570 % pa in Feb 2025. This records a decrease from the previous number of 2.660 % pa for Jan 2025. Canada Government Benchmark Bonds Yield: Month End: 2 Years data is updated monthly, averaging 3.015 % pa from Jan 1993 (Median) to Feb 2025, with 386 observations. The data reached an all-time high of 8.760 % pa in Jan 1995 and a record low of 0.150 % pa in Jan 2021. Canada Government Benchmark Bonds Yield: Month End: 2 Years data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.M012: Government Bonds Yield. 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.

Key information about Canada Short Term Interest Rate

• Canada Short Term Interest Rate: Month End: Treasury Bills Yield: 3 Months was reported at 2.82 % pa in Feb 2025, compared with 2.85 % pa in the previous month.
• Canada Short Term Interest Rate data is updated monthly, available from Jan 1993 to Feb 2025.
• The data reached an all-time high of 8.30 % pa in Mar 1995 and a record low of 0.06 % pa in Nov 2021.
• Short Term Interest Rate is reported by reported by Bank of Canada.

• In the latest reports, Canada Government Benchmark Bonds Yield: Month End: 10 Years was reported at 2.90 % 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.

In January 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 early 2025, Russia maintained the highest interest rate at 21 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 0.5 percent in January 2025. In contrast, Russia maintained a high inflation rate of 9.9 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.

Canada 20 Year Bond Yield was 3.18 percent on Thursday March 20, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for Canada 20Y.

In 2024, the Royal Bank of Canada (RBC) achieved the highest return on common equity (ROE) among the five largest Canadian banks, reporting an impressive annual ROE of 14.4 percent. The Canadian Imperial Bank of Commerce (CIBC) followed closely with a ROE of 13.4 percent. Alongside its leading ROE, RBC also posted the highest net income for the year, totaling 16 billion Canadian dollars.

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 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 $490.4 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, is anticipated to climb throughout 2025 due to the decreased provisions for credit losses (PCL). Industry revenue generated by interest income sources depends on demand for loans by consumers and the interest banks can charge on that capital it lends out. 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 1.7% to $532.5 billion over the five years to 2030.

Among Canada's largest banks, Toronto-Dominion Bank (TD Bank) reported the highest efficiency ratio in 2024 at 62 percent, followed by the Royal Bank of Canada (RBC) at 59.7 percent. The Canadian Imperial Bank of Commerce (CIBC) recorded the lowest efficiency ratio, at 55.8 percent. The efficiency ratio - also known as the cost-to-income ratio or productivity ratio - is a key measure of operational efficiency, calculated by dividing non-interest expenses by total revenue. A lower ratio indicates more efficient operations.

Canada Government Benchmark Bonds Yield: LW: 3 Years data was reported at 2.630 % pa in Feb 2025. This records a decrease from the previous number of 2.780 % pa for Jan 2025. Canada Government Benchmark Bonds Yield: LW: 3 Years data is updated monthly, averaging 2.545 % pa from Jan 1998 (Median) to Feb 2025, with 326 observations. The data reached an all-time high of 6.240 % pa in Jan 2000 and a record low of 0.190 % pa in Jan 2021. Canada Government Benchmark Bonds Yield: LW: 3 Years data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.M012: Government Bonds Yield. 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.

Canada 2 Year Bond Yield was 2.59 percent on Tuesday March 25, according to over-the-counter interbank yield quotes for this government bond maturity. This dataset includes a chart with historical data for Canada 2Y.