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.

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 CA: Long-Term Interest Rate: Government Bonds data was reported at 2.900 % in 2026. This records a decrease from the previous number of 3.018 % for 2025. Canada CA: Long-Term Interest Rate: Government Bonds data is updated yearly, averaging 5.541 % from Dec 1960 (Median) to 2026, with 67 observations. The data reached an all-time high of 14.989 % in 1981 and a record low of 0.753 % in 2020. Canada CA: Long-Term Interest Rate: Government Bonds data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Canada – Table CA.OECD.EO: Interest Rate: Forecast: OECD Member: Annual. IRL - Long-term interest rate on government bonds; Yield 10-year federal government benchmark bond)

Key information about Canada Long Term Interest Rate

• Canada Government Benchmark Bonds Yield: Month End: 10 Years was reported at 3.12 % pa in Oct 2025, compared with 3.17 % pa in the previous month.
• Canada Long Term Interest Rate data is updated monthly, available from Jan 1993 to Oct 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 2.21 % pa in Oct 2025.
• The cash rate (Policy Rate: Month End: Overnight Target Rate) was set at 2.25 % pa in Oct 2025.
• Canada Exchange Rate against USD averaged 1.40 (USD/CAD) in Oct 2025.

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.

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.

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.

Canada Conventional Mortgage: 5 Years: Weekly data was reported at 6.490 % pa in 07 May 2025. This stayed constant from the previous number of 6.490 % pa for 30 Apr 2025. Canada Conventional Mortgage: 5 Years: Weekly data is updated weekly, averaging 5.700 % pa from Jan 2000 (Median) to 07 May 2025, with 1323 observations. The data reached an all-time high of 8.750 % pa in 31 May 2000 and a record low of 4.640 % pa in 12 Jul 2017. Canada Conventional Mortgage: 5 Years: Weekly data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.M005: Conventional Mortgage Rate. [COVID-19-IMPACT]

Deposit Interest Rate in Canada remained unchanged at 4.91 percent on Wednesday April 10. This dataset includes a chart with historical data for Deposit Interest Rate in Canada.

Monthly and long-term Canada Interest Rate data: historical series and analyst forecasts curated by FocusEconomics.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***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 increases 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 2024, 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.

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.

Discover the booming Canadian home lending market! Explore key trends, growth projections (CAGR > 5%), leading lenders (HSBC, Tangerine, BMO), and market segmentation insights for 2025-2033. Analyze the impact of interest rates, regulations, and economic factors on this dynamic sector. Recent developments include: On March 15, 2022, First Ontario Credit Union announced its merger with Heritage savings & Credit union to offer the best in financial products and services., On February 09, 2022, Hello safe announced a new partnership with Hard bacon, a personal finance application used by more than 35,000 Canadians, this partnership is to leverage Hard bacon's portfolio of comparison tools.. Notable trends are: A Rise in Home Prices Boosting Home Equity Lending Market.

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.

Graph and download economic data for Interest Rates: Long-Term Government Bond Yields: 10-Year: Main (Including Benchmark) for Canada (IRLTLT01CAM156N) from Jan 1955 to Oct 2025 about long-term, Canada, 10-year, bonds, yield, government, interest rate, interest, and rate.

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

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Foreign Exchange Market Size 2025-2029

The foreign exchange market size is valued to increase by USD 582 billion, at a CAGR of 10.6% from 2024 to 2029. Growing urbanization and digitalization will drive the foreign exchange market.

Major Market Trends & Insights

Europe dominated the market and accounted for a 47% growth during the forecast period.
By Type - Reporting dealers segment was valued at USD 278.60 billion in 2023
By Trade Finance Instruments - Currency swaps segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 118.14 billion
Market Future Opportunities: USD 582.00 billion
CAGR from 2024 to 2029 : 10.6%

Market Summary

The market, a dynamic and intricate web of financial transactions, plays a pivotal role in facilitating global trade and economic interactions. Its primary function is to enable the conversion of one currency into another, thereby mitigating the risk of currency fluctuations for businesses and investors. Key drivers of this market include growing urbanization and digitalization, which have expanded trading opportunities to a 24x7 global economy. However, the uncertainty of future exchange rates poses a significant challenge, necessitating effective risk management strategies. The market's evolution reflects the increasing interconnectedness of the global economy. Transactions occur in a decentralized, over-the-counter system, with major trading centers in London, New York, and Tokyo.
Participants include commercial banks, investment banks, hedge funds, and individual investors, all seeking to capitalize on price differences between currencies. Trends shaping the market include the increasing use of automation and artificial intelligence to analyze market data and execute trades. Regulatory changes, such as the introduction of stricter capital requirements, also impact the market's functioning. Looking ahead, the market is expected to remain a vital component of the global financial landscape, with continued growth driven by increased trade and economic interdependence. However, challenges, such as regulatory changes and geopolitical risks, will necessitate adaptability and innovation from market participants.

What will be the Size of the Foreign Exchange Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Foreign Exchange Market Segmented ?

The foreign exchange industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Reporting dealers
  Financial institutions
  Non-financial customers


Trade Finance Instruments

  Currency swaps
  Outright forward and FX swaps
  FX options


Trading Platforms

  Electronic Trading
  Over-the-Counter (OTC)
  Mobile Trading


Geography

  North America

    US
    Canada


  Europe

    Germany
    Switzerland
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period.

The market, a dynamic and ever-evolving financial landscape, is characterized by constant activity and intricate patterns. Participants engage in various trading strategies, employing advanced tools such as stop-loss and take-profit orders on forex trading platforms. Real-time data feeds and order book dynamics facilitate trade execution speed, while market microstructure and slippage minimization techniques ensure efficient transactions. Currency correlation analysis and transaction cost analysis are integral to informed decision-making, with backtesting methodologies providing valuable insights. Currency forwards contracts, position sizing techniques, and forex derivatives pricing are essential components of risk management systems. Carry trade strategies, hedging strategies, and interest rate parity are popular tactics employed by market participants.

Algorithmic trading strategies, driven by options pricing models and trading algorithms' efficiency, significantly influence price discovery mechanisms. High-frequency trading and volatility modeling contribute to the market's liquidity risk management, while foreign exchange swaps and currency option valuation help manage risk. The market's complexities necessitate sophisticated risk management systems and intricate order routing optimization. Global payments systems facilitate the smooth transfer of funds, and liquidity risk management remains a critical concern for market participants. According to recent studies, The market is estimated to account for approximately USD6 trillion in daily trading volume, und

The statistic shows the average inflation rate in Canada from 1987 to 2024, with projections up until 2030. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2022, the average inflation rate in Canada was approximately 6.8 percent compared to the previous year. For comparison, inflation in India amounted to 5.56 percent that same year. Inflation in Canada In general, the inflation rate in Canada follows a global trend of decreasing inflation rates since 2011, with the lowest slump expected to occur during 2015, but forecasts show an increase over the following few years. Additionally, Canada's inflation rate is in quite good shape compared to the rest of the world. While oil and gas prices have dropped in Canada much like they have around the world, food and housing prices in Canada have been increasing. This has helped to offset some of the impact of dropping oil and gas prices and the effect this has had on Canada´s inflation rate. The annual consumer price index of food and non-alcoholic beverages in Canada has been steadily increasing over the last decade. The same is true for housing and other price indexes for the country. In general there is some confidence that the inflation rate will not stay this low for long, it is expected to return to a comfortable 2 percent by 2017 if estimates are correct.

The yield on Canada 10Y Bond Yield eased to 3.25% on December 2, 2025, marking a 0.01 percentage points decrease from the previous session. Over the past month, the yield has edged up by 0.09 points and is 0.13 points higher 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 December of 2025.

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.