The benchmark interest rate in Canada was last recorded at 2.25 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 April 2025, inflation decreased to *** percent. 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 further cuts, standing at * percent in March 2025 and **** percent in September 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.

More than ************* mortgage loans are projected to be affected by the increasing mortgage interest rates in Canada by 2025. About *********** of these mortgages are projected to be up for renewal in 2024. These loans were taken out at a time when interest rates were much lower, meaning that homeowners will be affected by a notable increase in their monthly payments.

View market daily updates and historical trends for Canada Bank Rate. Source: Bank of Canada. Track economic data with YCharts analytics.

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); ...).

How can Canada’s financial system hold off inflation rate hikes?

Bank Lending Rate in Canada decreased to 4.45 percent in November from 4.70 percent in October of 2025. This dataset provides - Canada Prime Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In September 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 September 2025, Russia maintained the highest interest rate at 17 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 -0.3 percent in September 2025. In contrast, Russia maintained a high inflation rate of 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.

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.

Business credit interest rate, percent in Canada, June, 2025 The most recent value is 5.09 percent as of June 2025, an increase compared to the previous value of 5.07 percent. Historically, the average for Canada from July 2016 to June 2025 is 4.2 percent. The minimum of 2.73 percent was recorded in September 2021, while the maximum of 6.49 percent was reached in May 2024. | TheGlobalEconomy.com

In light of the Bank of Canada’s six interest rate hikes this year, homeowners with a mortgage loan should brace themselves for higher rates at renewal over the next five years. And according to a recent Leger survey conducted on behalf of RATESDOTCA and BNN Bloomberg, 53% of homeowners are already feeling concerned about an increase in payments when their mortgages come up for renewal. While 52% of homeowners have a plan in place to meet those increased payments, half don’t consider shopping the market as part of that plan. In fact, 51% say they don’t plan to change lenders upon renewal, and 9% said they weren’t even aware that switching lenders was possible.https://static.rates.ca/images/BNN_x_RATESDOTCA_Concern_over_mortgage_renewal.width-800.png" width="800">

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.

Canada Consumer Price Index (CPI): All Items excl Mortgage Interest Cost data was reported at 163.200 2002=100 in Mar 2025. This records an increase from the previous number of 162.600 2002=100 for Feb 2025. Canada Consumer Price Index (CPI): All Items excl Mortgage Interest Cost data is updated monthly, averaging 106.000 2002=100 from Dec 1984 (Median) to Mar 2025, with 484 observations. The data reached an all-time high of 163.200 2002=100 in Mar 2025 and a record low of 60.200 2002=100 in Dec 1984. Canada Consumer Price Index (CPI): All Items excl Mortgage Interest Cost data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.I009: Core Inflation Index.

Key information about Canada Real Effective Exchange Rate

• Canada Real Effective Exchange Rate (REER: 2005=100: Month Avg: Canada) was 87.7 in Sep 2025, compared with the number of 88.3 in the previous month.
• Canada Real Effective Exchange Rate data is updated monthly and averaged 116.5 from Jan 1999 to Sep 2025.
• 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 2.2 % pa in Nov 2025.
• The cash rate (Policy Rate: Month End: Overnight Target Rate) was set at 2.3 % pa in Nov 2025.
• Canada Exchange Rate against USD averaged 1.4 (USD/CAD) in Oct 2025.

Canada Consumer Price Index (CPI): Shelter: OA: Mortgage Interest Cost data was reported at 181.400 2002=100 in Mar 2025. This records an increase from the previous number of 181.100 2002=100 for Feb 2025. Canada Consumer Price Index (CPI): Shelter: OA: Mortgage Interest Cost data is updated monthly, averaging 87.300 2002=100 from Jan 1949 (Median) to Mar 2025, with 915 observations. The data reached an all-time high of 181.400 2002=100 in Mar 2025 and a record low of 9.900 2002=100 in May 1951. Canada Consumer Price Index (CPI): Shelter: OA: Mortgage Interest Cost data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.I002: Consumer Price Index: 2002=100.

Inflation Rate in Canada decreased to 2.20 percent in October from 2.40 percent in September of 2025. This dataset provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The interest rate of business loans in Canada dropped significantly over the early months of 2020, but it soared in 2022 and 2023. In February 2020, the interest rate for business loans was 4.06 percent and it dropped to 2.8 in September 2021. The interest rate remained low until early 2022, when it began to increase at fast-pace. In September 2024, the rate declined by 13 basis points compared to the same period of the previous year.

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

The North American mortgage/loan broker market, encompassing the United States and Canada, exhibits robust growth potential. Driven by factors such as increasing homeownership aspirations, fluctuating interest rates stimulating refinancing activity, and the rising complexity of mortgage products requiring expert guidance, the market is projected to maintain a healthy Compound Annual Growth Rate (CAGR) of 5.00% from 2025 to 2033. This growth is further fueled by the expanding segments within the market. The enterprise segment, particularly the medium and large-sized businesses, demonstrates strong demand for efficient loan processing solutions offered by brokers. Within applications, home loans continue to be a major driver, followed by growing demand for commercial and industrial loans, reflecting an active construction and business investment landscape. The increasing number of individuals and businesses seeking financial assistance contributes to market expansion, with geographical variations existing between the United States and Canada, reflective of their distinct economic climates and real estate markets. The presence of established players like PennyMac, Home Point, and JP Morgan Chase, alongside numerous regional and independent brokers, indicates a competitive yet dynamic market landscape. However, the market faces certain restraints. Economic downturns, stricter lending regulations, and technological disruptions impacting traditional broker models pose challenges to sustained growth. Nevertheless, the adaptation of innovative technologies, such as online platforms and AI-powered tools, by brokers is expected to mitigate these challenges. The segment comprising loans to governments, while presently smaller, presents a potential avenue for expansion, especially considering infrastructure development projects and government initiatives. Effective segmentation strategies, focusing on specific customer needs and leveraging advanced technologies, are crucial for brokers to gain a competitive edge and capitalize on market opportunities in the years to come. The overall outlook remains positive, with significant growth prospects for well-positioned players in the coming decade. Recent developments include: In November 2022, To expand the use of eNotes across 250 locations in 49 states, Primary Residential Mortgage Inc. (PRMI) employed the eVault and digital closing platform from Snapdocs., In August 2022, Due to the slowdown in home sales caused by rising interest rates, the two biggest mortgage lenders in the US are increasing pressure on their smaller rivals by providing discounts and other incentives. The two biggest mortgage originators in the US, Rocket Mortgage and United Wholesale Mortgage, respectively, are pursuing aggressive strategies at a time when many lenders are leaving the market or going out of business.. Notable trends are: Increase in Digitization in Lending and Blockchain Technology is driving the market.

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