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 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.

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; ...).

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.

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); ...).

In 2023, mortgage interest rates in Canada increased for all types of mortgages. The interest rate for fixed mortgage interest rates for five years and more doubled, from 2.38 percent to 5.52 percent between December 2021 and December 2023. The higher borrowing costs led to the housing market contracting in 2022 and corrections of the property prices across the country.

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.

Mortgage interest rates worldwide varied greatly in 2024, from less than four percent in many European countries, to as high as 44 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 increase 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 2023, 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.

Concrete contractors rely heavily on the residential, industrial and infrastructure construction markets. Contractors enjoyed strong growth from the residential construction market in 2020 and 2021, but growth slowed in 2022 and 2023 as interest rates began to climb. Interest rate cuts by the Bank of Canada and low housing stock contributed to a resurgence in residential construction activity, greatly benefitting concrete contractors. Oil and gas producers looking to expand their output to take advantage of favourable prices began increasing capital expenditure on production facilities, greatly benefitting contractors. Solid investment in infrastructure by the Canadian government has recently offset some declines in the residential market. Government tax incentives have also boosted manufacturing construction in 2023 and 2024, greatly benefitting contractors as manufacturing construction projects are often large in scale and require considerable amounts of concrete. Industry-wide revenue has been expanding at a CAGR of 0.5% over the past five years and is expected to total $9.8 billion in 2024, when revenue will jump by an estimated 1.1%. Concrete contractors have faced profit declines. Interest rate hikes led to lower construction activity, increasing price-based competition among contractors and subduing profit. Also, labour shortages plaguing the Canadian construction sector have forced some contractors to hike wages to attract and retain workers, further hindering profit expansion. While contractors have endured sluggish growth and higher wage costs, they have managed to pass higher material costs onto customers, enabling purchase costs to fall as a share of revenue. Continued interest rate cuts and government programs like the first-time homebuyer incentive and the housing accelerator fund will boost the residential construction market, benefitting concrete contractors. Government investment into roads and infrastructure will also provide concrete contractors with an avenue of growth. Profit will stagnate as input prices and wage costs remain high. Investment into energy infrastructure will contribute to expansion. The commercial market returning to growth will be a boon to contractors as new hotel, restaurant and bar construction activity surges. Still, office building construction will continue to lag as office rental vacancies remain high amid remote and hybrid work environments. Industry revenue is forecast to climb at a CAGR of 2.0% through the end of 2029 to total $10.8 billion.

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.

I study the transmission of financial shocks using an estimated heterogeneous firm model. Following a contractionary financial shock, financially constrained firms cut investment, but unconstrained firms increase investment due to the lower capital price and interest rate. After matching the empirical dynamics of prices and the price elasticity of investment, I find a limited role of the unconstrained firms’ response in dampening the aggregate investment decline. Non-financial capital adjustment friction is the key to generating this result. Without the capital adjustment friction, unconstrained firms’ investment becomes unrealistically sensitive to prices, and the model would understate the financial shocks’ aggregate relevance.

Data and code for peer-reviewed article published in American Economic Journal: Macroeconomics

Through the end of 2024, heavy engineering construction contractors have benefited from the federal government's strong commitment to closing Canada's infrastructure gap. Since its conceptualization, the federal government's Investing in Canada Plan, a 12-year, $180.0 billion fund for local and regional infrastructure, has underpinned growth. Heavy engineering construction companies' revenue has been expanding at a CAGR of 2.8% over the past five years and is expected to total $72.7 billion in 2025, when revenue will increase an estimated 1.4% and profit will have seen an overall expansion as demand has remained strong while purchase cost inflation has cooled. Heavy engineering construction contractors have not only benefitted from climbing federal investment but also growing private investment. The government has supported private investment through Public-private Partnerships Canada, a Crown corporation tasked with increasing the private sector's role in providing public infrastructure. Private sector support has greatly benefitted contractors. Higher commodity prices led to an uptick in mining infrastructure spending over the past five years. Also, supply chain bottlenecks led to investments in expanding port capacities. Capital expenditures on railroad tracks have also expanded. However, private investment has also been stifled by high interest rates, which have drove up the cost of capital. The Bank of Canada raised or maintained rates from early 2022 through mid-2024. A sustained period of cuts is expected to contribute to growth in 2025. Heavy engineering construction contractors will benefit from steady government support and a more attractive investment climate as the Canadian economy recovers. Expanding energy infrastructure investments will also promote growth. Tax credits and the Smart Renewables and Electrification Pathways Program will promote investment into hydropower plants, bolstering the performance of heavy engineering construction contractors. Contractors do face the threat of a potentially escalating trade war between the US and Canada, which could impede cross-border business and drive up input costs. Still, heavy engineering construction revenue is expected to rise at a CAGR of 2.1% to $80.5 billion through the end of 2030.

Local specialized freight truckers in Canada have faced significant volatility amid wide swings in upstream production capacities since 2019. Surging industrial activity from mining companies and manufacturers supported revenue in the wake of the pandemic, but recent high interest rates have cut into demand from the construction sector. Skyrocketing oil prices supported demand for liquid bulk transportation as Canadian extractors produced more oil. Still, trucking companies continue to contend with a labour shortage that has limited their ability to fully service clients' needs. Revenue has been slipping at a CAGR of 0.3% to $11.1 billion through the current period, including an expected 0.9% dip in 2024 alone. Fuel costs have played an especially prominent role through the current period, surging as supply chains ramped and sanctions on Russian oil weighed on the world's supply. Larger local specialized freight trucking companies successfully levied fuel surcharges or mitigated prices with forward contracts, but smaller competitors weren't able to impose the same additional costs. Some were forced out of the industry, exacerbating larger companies' dominance and lifting concentration. Still, lingering competition has prevented truckers from fully passing on fuel costs and preserving profit. Moving forward, companies will recover as strong economic growth fuels demand for specialized transportation services. Many carriers will benefit from the increased use of just-in-time inventory management and rising supply chain integration. These trends will enable more frequent delivery and increase the complexity of clients' supply chains, encouraging large-scale corporations to outsource trucking operations to third-party truckers. The Bank of Canada's eventual lowering of interest rates will spur demand from construction companies, helping offset lackluster mining activity. Revenue is set to climb at a CAGR of 1.5% to $12.0 billion through the end of 2029.

Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling to 3.37 percent in the second quarter of 2023. In the four quarters, the delinquency rate increased slightly, reaching 3.97 percent. That was significantly lower than the 8.22 percent during the onset of the COVID-19 pandemic in the second quarter of 2020 or the peak of 9.3 percent during the subprime mortgage crisis of 2007-2010. What does the mortgage delinquency rate tell us?The mortgage delinquency rate is the share of the total number of mortgaged home loans in the U.S. where payment is overdue by 30 days or more. Many borrowers are eventually able to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost 13 trillion U.S. dollars in 2023. Not all mortgage loans are made equal‘Subprime’ loans, being targeted at high-risk borrowers and generally coupled with higher interest rates to compensate for the risk. These loans have far higher delinquency rates than conventional loans. Defaulting on such loans was one of the triggers for the 2007-2010 financial crisis, with subprime delinquency rates reaching almost 26 percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under 15 percent of all subprime mortgages in 2011.

This dataset provides values for BANK LENDING RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

A graphic that displays the dollar performance against other currencies reveals that economic developments had mixed results on currency exchanges. The third quarter of 2023 marked a period of disinflation in the euro area, while China's projected growth was projected to go up. The United States economy was said to have a relatively strong performance in Q3 2023, although growing capital market interest rate and the resumption of student loan repayments might dampen this growth at the end of 2023. A relatively weak Japanese yen Q3 2023 saw pressure from investors towards Japanese authorities on how they would respond to the situation surrounding the Japanese yen. The USD/JPY rate was close to 150, whereas analysts suspected it should be around 90 given the country's purchase power parity. The main reason for this disparity is said to be the differences in central bank interest rates between the United States, the euro area, and Japan. Any future aggressive changes from, especially the U.S. Fed might lower those differences. Financial markets responded somewhat disappoint when Japan did not announce major plans to tackle the situation. Potential rent decreases in 2024 Central bank rates peak in 2023, although it is expected that some of these will decline in early 2024. That said, analysts expect overall policies will remain restrictive. For example, the Bank of England's interest rate remained unchanged at 5.25 percent in Q3 2023. It is believed the United Kingdom's central bank will ease its interest rate in 2024 but less than either the U.S. Fed or the European Central Bank. This should be a positive development for the pound compared to either the euro or the dollar.

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.

At the end of 2023, Zimbabwe had the highest inflation rate in the world, at 667.36 percent change compared to the previous year. Inflation in industrialized and in emerging countries Higher inflation rates are more present in less developed economies, as they often lack a sufficient central banking system, which in turn results in the manipulation of currency to achieve short term economic goals. Thus, interest rates increase while the general economic situation remains constant. In more developed economies and in the prime emerging markets, the inflation rate does not fluctuate as sporadically. Additionally, the majority of countries that maintained the lowest inflation rate compared to previous years are primarily oil producers or small island independent states. These countries experienced deflation, which occurs when the inflation rate falls below zero; this may happen for a variety of factors, such as a shift in supply or demand of goods and services, or an outflow of capital.