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.

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.

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 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.

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.

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.

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); ...).

Risk premium on lending of Canada went down by 0.76% from 2.20 % in 2016 to 2.18 % in 2017. Since the 8.74% surge in 2015, risk premium on lending reduced by 3.89% in 2017. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.

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.

Unemployment Rate in Canada increased to 7.10 percent in August from 6.90 percent in July of 2025. This dataset provides - Canada Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and 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.

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.

View market daily updates and historical trends for Secured Overnight Financing Rate. from United States. Source: Federal Reserve Bank of New York. Track …

The Canadian Engineering Services industry has navigated a tumultuous yet resilient period, facing challenges from fluctuating commodity prices and rapid technological competition. In recent years, engineering firms have heavily depended on the resource extraction industries, concentrated in Alberta, accounting for nearly a quarter of industry revenue. These sectors faced contractions in 2020 and 2023 when oil and commodity prices fell, postponing crucial projects and hindering revenue. However, as Canadian oil prices rebounded, so did the need for engineering services, reinvigorating business pipelines. Amid this volatility, engineering firms have harnessed advanced technologies like cloud computing, digital twins and lean engineering to streamline operations, cut costs and level the playing field, especially for smaller competitors. Yet, the ongoing low industry profit of 7.7%, hampered by wage and price competition, remains a hurdle. Engineering operations have had strong growth over the past five years at a CAGR of 2.1%, reaching $46.4 billion in 2025. This resilient expansion overcame economic headwinds like volatile interest rates and inflation, which prompted firms to diversify service offerings. Engineering businesses have aimed to stabilize revenue and capture market share by expanding into niche, specialized services. Government spending through the Investing in Canada Plan provided stability for the sector, offsetting private sector dips and safeguarding project pipelines, particularly in infrastructure-heavy regions like Ontario. Revenue growth in 2025 is at 1.6%. However, labour shortages and an ongoing skills gap will press the industry, incentivizing the industry to leverage internationally trained engineers and boost workforce development initiatives to remain competitive. The next five years have a similarly positive outlook for Canadian Engineering Services, with revenue growth at a CAGR of 1.9%, bumping revenues to $50.9 billion by 2030. Stabilizing economic conditions, such as slow but steady interest rate cuts, signal a buoyant environment, with investment prospects in renewable energy and infrastructure gaining traction. Provinces like Alberta and British Columbia present lucrative opportunities for engineers, especially in the biofuel and wind power sectors. However, the looming labour shortages may drive wage expenses up and elongate project timelines, necessitating strategic responses from the industry to attract and retain skilled workers. Emphasizing sustainability and embracing innovative technologies will differentiate successful companies, equipping them to seize emerging opportunities and adapt to evolving market demands efficiently. By focusing on workforce upskilling and technological adoption, engineering companies can position themselves as leaders in a recovering market brimming with potential.

The health of the construction sector varies significantly based on factors such as macroeconomic conditions, interest rates, foreign demand and public investment, making construction machinery producers susceptible to considerable revenue volatility. During the early stages of the 2020 pandemic, demand for new equipment slowed sharply, primarily due to weaker nonresidential construction activity. The Bank of Canada responded by cutting interest rates to stimulate the economy, leading to a revenue boom in 2021. Although rates began to rise in 2022, the recovering construction sector sustained revenue and profit gains, although at a slower pace. As macroeconomic conditions improved, interest rates started to fall in 2024. Although lower rates typically support construction activity, an extended period of high rates limited revenue growth, resulting in relatively small changes in revenue in 2024 and 2025. Construction machinery producers have benefited from public sector infrastructure initiatives. Government investment in projects such as roads, bridges and energy and manufacturing facilities supports demand for construction companies, which rely heavily on machinery. Higher commodity prices have boosted machinery demand from the mining, agriculture and forestry sectors, driving machinery sales. Overall, these factors are set to cause revenue to strengthen at a CAGR of 8.3% to $3.9 billion by the end of 2025, including a 0.5% gain in that year. Canadian producers continue to face significant competition from the international market. The Canadian dollar’s recent depreciation has boosted the value of exports, supporting revenue gains. Despite this, imported equipment satisfies more than 80.0% of domestic demand, while exports generate over half of producers’ revenue, making the sector highly sensitive to global macroeconomics and construction trends. Strong import competition also limits manufacturers’ ability to pass on fluctuating input costs, as offering competitive pricing remains key. Despite these trends, a strong domestic market has reduced import penetration and made exports a smaller share of revenue. Demand for new construction equipment is expected to continue growing, though at a slower pace. Public investment in infrastructure will be a key driver for manufacturers as large-scale projects require significant machinery. Producers will also benefit from ongoing construction activity in the US market, driven by demand from the residential sector and potential interest rate cuts by the Federal Reserve. While declining input prices will help producers remain competitive, significant price-based competition from foreign manufacturers, primarily from the United States, Japan and China, will limit profit gains. Producers will face some uncertainty over the coming years surrounding trade conditions. Revenue is set to grow at a CAGR of 1.1% to $4.2 billion through the end of 2030.

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

Plumbers have navigated a turbulent market, riding waves of growth and contraction spurred by fluctuating interest rates and shifting housing demands. Historically low interest rates initially fueled a boom in single-family residential construction. This period of growth brought a surge in the need for plumbing services as prospective homeowners found affordable financing options attractive. However, this momentum was blunted by interest rate hikes, which significantly curtailed new single-family construction and dampened renovation expenditure. Interest rate cuts in 2024 may boost some new single-family contruction. The multifamily market has expanded and benefitted plumbers, even amid high rates. Industry revenue has been increasing at a CAGR of 2.4% over the past five years to total an estimated $24.0 billion in 2024, including an estimated increase of 1.0% in 2024. Plumbers have showcased resilience amid economic volatility. New entrants have crowded the market, intensifying price competition and straining profit, while labour expenses have added to the financial pressure. The nonresidential market, which remained relatively stable because of the indispensable need for maintenance and repair, did see some shifts. The drop in office construction nudged commercial plumbers towards other markets like hotel construction, which has surged recently. Despite these challenges, the rise in renovation activity has been a strong growth driver. The landscape appears promising for plumbers, buoyed by interest rate cuts and a recovering economy. The resurgence in single-family residential construction and robust apartment and condominium developments will provide a solid pipeline of new projects. With increasing energy prices, there will be a significant uptick in plumbing renovations to improve energy efficiency. Environmentally conscious plumbing solutions will become more mainstream, supported by government incentives and an eco-conscious clientele. As disposable incomes climb, homeowners will invest more in plumbing upgrades, driven by both functional needs and sustainability goals. Industry revenue is forecast to climb at a CAGR of 2.2% to total an estimated $26.8 billion through the end of 2029.

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.

Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling below *** percent in the second quarter of 2023. In the second half of 2023, the delinquency rate picked up, but remained stable throughout 2024. In the first quarter of 2025, **** percent of mortgage loans were delinquent. That was significantly lower than the **** percent during the onset of the COVID-19 pandemic in 2020 or the peak of *** 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 eventually manage to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost ** trillion U.S. dollars in 2024. 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 ** percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under ** percent of all subprime mortgages in 2011.