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 May 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.

Canada CA: Real Interest Rate data was reported at 0.126 % pa in 2017. This records a decrease from the previous number of 1.969 % pa for 2016. Canada CA: Real Interest Rate data is updated yearly, averaging 2.987 % pa from Dec 1961 (Median) to 2017, with 57 observations. The data reached an all-time high of 10.363 % pa in 1990 and a record low of -4.170 % pa in 1974. Canada CA: Real Interest Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Interest Rates. Real interest rate is the lending interest rate adjusted for inflation as measured by the GDP deflator. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.;International Monetary Fund, International Financial Statistics and data files using World Bank data on the GDP deflator.;;

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 June. This dataset provides - Canada Prime Lending 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); ...).

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.

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.

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

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.

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.

The yield on Canada 10Y Bond Yield eased to 3.36% on July 4, 2025, marking a 0.02 percentage point decrease from the previous session. Over the past month, the yield has edged up by 0.11 points, though it remains 0.14 points lower than a year ago, 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 July of 2025.

This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, the federal government deficit, federal politicians, and immigration policy. There are also questions on other topics of interest such as interest rates, deficit reduction strategies, and level of income to be considered rich. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; federal government deficit; federal politicians; interest rates; immigration; and political party preference. Basic demographic variables are also included

This dataset covers ballots spanning January-December 1996. The dataset contains the data resulting from these polls in ASCII. The ballots are as follows: 001 - January This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions on the past election, the state of the economy, the standard of living in Canada, and federal politics. There are also questions on other topics of interest such as the most important problem facing Canada, approval of Jean Chretien, and spousal relations. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: the economy; standard of living; Jean Chretien; federal politics; spousal relations; and political party preference. Basic demographic variables are also included. 002 - February This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, government spending, crime and justice issues, and opinion of the Canadian Broadcasting Corporation (CBC). There are also questions on other topics of interest such as the most important problem facing Canada, approval of Jean Chretien, and the Canadian Football League (CFL). The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: CBC; government spending; Jean Chretien; election; CFL; death penalty; and political party preference. Basic demographic variables are also included. 003 - March This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, federal budget, and the honesty of people in various different professions. There are also questions on other topics of interest such as opinion of the direction Canada is taking, approval of Jean Chretien, and the 2006 Academy Awards. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: professional honesty; federal budget; Jean Chretien; election; Academy Awards; and political party preference. Basic demographic variables are also included. 004 - April This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, federal politics, and respect/confidence in Canadian institutions. There are also questions on other topics of interest such as opinion of the PC-Reform merger, approval of Jean Chretien, and the NHL. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: Canadian institutions; federal politics; Jean Chretien; election; PC-Reform merger; and political party preference. Basic demographic variables are also included. 005 - May This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, approval of federal politicians, and perception of violent crime and treatment of criminals by Canadian institutions. There are also questions on other topics of interest such as opinion of the Government's handling of the GST, Shelia Copps, and diet and exercise. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; federal politicians; Jean Chretien; violent crime; criminals; diet; weight; exercise; and political party preference. Basic demographic variables are also included. 006 - June This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, approval of federal politicians, the current economic conditions, and hunger in society. There are also questions on other topics of interest such as opinion of the Government's handling of the economic situation, unemployment, and responsibility for hunger in society. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; federal politicians; hunger; economy; criminals; unemployment; and political party preference. Basic demographic variables are also included. 007 - July This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, current and future business conditions, and reproductive technology. There are also questions on other topics of interest such as the Charter of Rights and Freedoms, Quebec separation, most important problem facing Canada, and the V-chip. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; V-chip; reproductive technology; business conditions; Quebec separation; Charter of Rights and Freedoms; and political party preference. Basic demographic variables are also included. 008 - August This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, federal politicians, and job security. There are also questions on other topics of interest such as federal government spending on poorer regions, and the best university in Canada. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; university; federal politicians; job security; and political party preference. Basic demographic variables are also included. 009 - September This Gallup poll seeks the opinions of Canadians, on predominantly economic, political, and social issues. The questions ask opinions of the past election, the state of the economy, and family finances. There are also questions on other topics of interest such as government funding for education, and health care in Canada. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; economy; Jean Chretien; family finances; health care; education; and political party preference. Basic demographic variables are also included. 010 - October This Gallup poll seeks the opinions of Canadians, on predominantly economic, political, and social issues. The questions ask opinions of the past election, the state of the economy, and homosexuality. There are also questions on other topics of interest such as unemployment, the federal government's handling of the deficit, and who would make the best Prime Minister for Canada. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; economy; Jean Chretien; homosexuality; unemployment; and political party preference. Basic demographic variables are also included. 011 - November This Gallup poll seeks the opinions of Canadians, on predominantly political and social issues. The questions ask opinions of the past election, the federal government deficit, federal politicians, and immigration policy. There are also questions on other topics of interest such as interest rates, deficit reduction strategies, and level of income to be considered rich. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; federal government deficit; federal politicians; interest rates; immigration; and political party preference. Basic demographic variables are also included. 012 - December This Gallup poll seeks the opinions of Canadians, on predominantly economic, political, and social issues. The questions ask opinions of the past election, the state of the economy, family finances, and the Christmas holiday. There are also questions on other topics of interest such as interest rates, donating and volunteering, and the standard of living as compared to 20 years ago. The respondents were also asked questions so that they could be grouped according to geographic, political and social variables. Topics of interest include: election; economy; family finances; Christmas; interest rates; donating; volunteering; standard of living; and political party preference. Basic demographic variables are also included.The codebook for this dataset is available through the UBC Library catalogue, with call number HN110.Z9 P84.

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 ***, whereas analysts suspected it should be around ** 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 **** 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.

The recent housing market cycle has driven the sawmill and wood production industry’s performance. Initially, the surge in residential construction and renovation in Canada and the US in 2021, spurred by low interest rates and high disposable incomes, drove significant demand for softwood lumber, leading to a 43.5% jump in revenue for industry mills. However, rising interest rates in 2022 cooled housing demand, causing a significant drop in lumber prices and revenue. In 2024, the industry faced ongoing challenges due to rising costs, tariffs and reduced demand, with major companies like West Fraser and Canfor reporting losses and closing mills to correct the supply-demand imbalance for lumber. The longstanding Canada-US trade dispute over softwood lumber continues, with tariffs raised to 14.54% in 2024, prompting Canada to file legal challenges. Further increases are expected to be implemented in 2025. The industry is grappling with the impacts of severe wildfires that hinder mill operations and access to timber resources, further exacerbating economic difficulties. As a result, over the past five years, revenue has fallen at an estimated annualized rate of 4.0% to $18.8 billion through the end of 2025, with low growth of 1.6% forecast for the current year. Future performance will depend on the US and Canadian housing markets, which are facing challenges relating to home affordability. Tariffs from the ongoing softwood lumber dispute between the US and Canada will continue to affect industry sawmills, prompting companies to adapt by improving efficiency or relocating facilities. Market conditions are pushing major lumber players to consolidate operations, with some acquiring mills in the US to bypass tariffs. Natural threats like wildfires and wood-boring insects pose ongoing risks to log supplies essential for sawmill operations. Over the next five years, industry revenue is forecast to grow at a CAGR of 1.7% to $20.5 billion through the end of 2030.

Canada's Industrial Equipment Rental and Leasing industry has overcome economic volatility through the end of 2024 as the variety of products rented or leased limits economic fluctuations from affecting demand from any one market. Healthcare facilities regularly rent and replace medical devices that are too costly to purchase and become obsolete quickly. Manufacturing and construction customers have adopted similar strategies to mitigate capital costs and access up-to-date equipment. Although COVID-19 substantially hindered some of the largest markets for industrial equipment rentals (manufacturing), historically low interest rates drove growth in residential construction while demand for equipment from overwhelmed hospitals soared. Despite 2020 declines, industry revenue has increased at a CAGR of 1.8% over the past five years, reaching $5.7 billion in 2024. Revenue will swell an estimated 1.3% in 2024 alone as the popularity of equipment rental conquers inflationary pressures. Renting rather than purchasing equipment offers flexibility for many businesses, enabling customers to quickly adjust inputs, costs and output, which is especially desirable when demand conditions are volatile. This has supported the expansion of rental companies through economic downturns. The Bank of Canada began cutting interest rates in June 2024 and several rate cuts since June have stimulated greater construction activity, bolstering demand from a vital market for industrial equipment rental and leasing. Profit has inched downward through the end of 2024 amid volatile demand from downstream markets and heightened competition. Through the end of 2029, contractors will benefit from accelerating nonresidential construction activity and consistent demand from the industrial and healthcare sectors. Renting and leasing industrial equipment will continue gaining popularity across industries. Technological advancements in equipment, which will drive rental demand, will also prompt rental companies to invest in updated fleets. Environmental consciousness will spur sustainable practices and the adoption of eco-friendly equipment among rental companies. As demand normalizes over the next five years, revenue will expand at a CAGR of 1.3% to reach $6.0 billion in 2029.

Over the past five years, Canadian hand tool manufacturers experienced an annual growth of just 0.5%, reaching a revenue of $759.3 million in 2024. Declining exports, which constitute nearly 80% of the industry's revenue, significantly impacted its financial performance. Competition from countries like China and Taiwan has driven this decline, particularly affecting demand from non-US markets such as Belgium, Mexico and Germany. Moreover, economic challenges, including elevated interest rates and business uncertainty, contributed to reduced domestic demand and foreign sales, resulting in an anticipated 1.1% revenue decline in 2024. The hand tool manufacturing industry is heavily influenced by factors like international competition, foreign demand and economic conditions. The industry's reliance on foreign markets, especially the US, is crucial, as over half of its revenue is derived from exports to this market. Additionally, domestic manufacturers face significant competition from the US and China, with challenges in maintaining competitiveness due to disparities in production scales and labor costs. The industry is further impacted by fluctuations in construction activity and economic indicators, including interest and mortgage rates, which affect both consumer spending and business investments. Looking ahead, the industry is projected to grow at a CAGR of 1.8%, with revenue expected to reach $828.5 million by 2029. Forecasted declines in interest and mortgage rates are anticipated to boost demand, and the industry's partial rebound in 2025. Import penetration is projected to decline slightly due to an anticipated drop in the Canadian effective exchange rate. However, challenges such as potential US tariffs on Canadian goods pose risks. While economic growth is set to drive demand, Canada's recent immigration policy changes may slow overall growth despite lower interest rates, impacting the projected industry performance.

Concrete contractors have navigated a volatile landscape shaped by shifting interest rates and economic pressures in recent years. The low interest rates of 2020 and 2021 fueled a boom in residential construction, driving significant growth for contractors focused on single-family homes and renovations. As nonresidential spending waned, these residential projects provided a vital lifeline. However, the rise in interest rates during 2022 and 2023 slowed this momentum, particularly in single-family housing starts. Despite these challenges, apartment construction continued to rise, offering steady work for those specializing in cast-in-place concrete. Rate cuts in 2024 led to a recovery in single-family housing starts, benefiting contractors. Overall, industry revenue has been increasing at a CAGR of 3.2% over the past five years to total an estimated $15.1 billion through the end of 2025, including an estimated increase of 1.5% in 2025. Over the past five years, infrastructure investments have been crucial in supporting concrete contractors. Government commitments, such as Quebec's $1.5 billion road repair initiative and Alberta's $335.1 million paving boost for 2024, have created substantial opportunities. Also, the recent growth in manufacturing facilities, spurred by tax credits, has led to a surge in factory construction projects. Contractors have adapted to rising material costs, passing these on to customers, maintaining profitability and contributing to price-based revenue gains. Although supply chain issues and labour shortages have posed challenges, strategic positioning and cost management have enabled concrete contractors to weather these storms effectively. The next five years present a mixed outlook for concrete contractors. Canada's expected housing shortfall of 3.5 million units by 2030 will likely fuel residential construction, but uncertainty regarding interest rates may hinder housing development. Infrastructure investments, particularly in Ontario, Alberta and Newfoundland, will continue providing lucrative contracts. However, potential challenges loom. Persisting labour shortages and retaliatory tariffs on US materials could increase costs for the construction sector and lead to a slowdown in investments by downstream markets. While office building construction will likely remain sluggish because of high vacancy rates, other commercial markets, like hotel construction, will spur growth. Industry revenue is forecast to increase at a CAGR of 1.3% to total an estimated $16.1 billion through the end of 2030.