The Bank of Canada is maintaining its key interest rate at 2.75 percent, saying global tariff uncertainty remains high but Canada’s economy is showing “some resilience so far.”
“At this rate decision, there was clear consensus to hold our policy rate unchanged,” Bank of Canada Governor Tiff Macklem told reporters on July 30.
Macklem said the Bank will assess future interest rate changes based on “the risks and uncertainties” for Canada’s economy, such as how much U.S. tariffs reduce demand for Canadian exports, and how that impacts business investment, household spending, employment, and inflation.
“If a weakening economy puts further downward pressure on inflation, and the upward price pressure from the trade disruptions is contained, there may be a need for a reduction in the policy interest rate,” Macklem said….