Bank of Canada Holds Key Interest Rate at 2.75% for Fourth Consecutive Month
The Bank of Canada has announced that it will keep its key interest rate at 2.75% for the fourth month in a row. This decision, widely expected by most economists and financial markets, comes at a time when the labor market remains strong despite ongoing trade tensions with the United States.
Stability Reflects the Central Bank’s Cautious Approach
Since March 2025, when the Bank of Canada last cut its key rate by a quarter of a percentage point, no further reductions have been announced. The institution is adopting a cautious stance, considering that current economic conditions do not yet warrant additional cuts.
While the annual inflation rate remains close to the 2% target, core inflation (which excludes certain volatile components) is still hovering around 3%. This higher level is prompting the central bank to take a measured approach to avoid renewed inflationary pressures.
A Strong Job Market
The Canadian economy continues to show resilience, particularly in the labor market. In June, a total of 83,000 jobs were created—well above expectations—reinforcing confidence in the overall health of the job market.
This strong employment growth acts as a stabilizing factor for the economy, but it also justifies the Bank of Canada’s caution in avoiding premature monetary easing.
Trade Tensions and Uncertainty
Trade tensions with the United States remain a key source of uncertainty. While they have not yet resulted in a significant slowdown, they are among the factors closely monitored by the central bank ahead of its future policy decisions.
Next Review in September
The next review of the key interest rate will take place on September 17. Until then, economists will be watching inflation, growth, and employment data closely to assess whether a change in monetary policy could be considered before the end of the year.
For any questions about this article or for expert advice on real estate, we encourage you to contact Johnathan Cloutier, your residential and commercial real estate broker.
Representing the company Royal LePage Partenaire, Johnathan Cloutier is available to assist you in all your real estate endeavors. Whether buying or selling a property, in the region of Laval.
Feel free to contact him by phone at (514) 226-4444, or by email at JohnCloutier@royallepage.ca. For more information, you can also visit his website at the following address: www.johncloutier.ca.
We invite you to get in touch with Johnathan Cloutier to address all your real estate questions and needs in the region of Laval. He will provide the necessary expertise for your projects in this dynamic and rapidly growing area.
