BCE and RioCan REIT Most Affected by Elevated Interest Rates in Canada

Canada's inflation rate remained steady at 3% in August, matching the July reading and tempering expectations that interest rates would soon decrease.

The Bank of Canada has kept its benchmark interest rate at 2.25%, but if energy prices stay high and economic conditions continue to improve, policymakers may face pressure to raise rates sooner than expected.

High interest rates can weigh heavily on corporate profitability, especially for businesses with significant debt or ongoing capital investment.

Two Canadian stocks that are most affected by elevated rates are BCE (TSX: BCE) and RioCan REIT (TSX: REI.UN).

BCE, a telecommunications company, faces pressure from high interest rates due to its significant debt for network infrastructure and other investments. In the second quarter of 2026, BCE's interest expense rose by $27 million compared with the same quarter a year earlier.

RioCan REIT also faces high interest rate risk, but it has maintained a relatively high proportion of fixed-rate debt and staggered its debt maturities to reduce refinancing concentration. However, interest rates remain an important factor affecting its financial performance.