US Edition
Bank of Canada again holds key interest rate at 2.75%
- On June 4, 2025, the Bank of Canada opted to maintain its policy rate at 2.75 percent, reflecting cautiousness amid ongoing trade tensions with the United States.
- Policymakers paused to await clearer data on how the U.S. Doubling of steel and aluminum tariffs to 50 percent will affect the Canadian economy.
- The economy grew at an annualized 2.2 percent in the first quarter, surpassing expectations as businesses accelerated activity before tariffs took effect.
- Governor Tiff Macklem acknowledged ongoing high uncertainty and indicated that the Bank would adopt a more cautious approach going forward, emphasizing its commitment to fostering economic growth while keeping inflation under control.
- The council signaled it might lower rates if the economy weakens from tariff effects and inflation stays contained, with the next decision scheduled for July 30, 2025.
74 Articles
74 Articles
Why didn't the Bank of Canada cut interest rates again?
The Bank of Canada (BoC) held interest rates steady for a second month, following seven consecutive cuts before that. The overnight rate of 2.75 per cent is in the middle of the BoC’s estimate for a neutral interest rate range of 2.25 per cent to 3.25 per cent.
Realtors welcome Bank of Canada’s maintained 2.75% lending rate
The Central Lakes Association of Realtors has released its latest housing market statistics for the month of May highlighting continued growth in listings and overall activity across the region as the market moves into the summer season.
Toronto (Canada), 4 Jun (EFE).- For the second time in a row, the Bank of Canada announced this Wednesday that it leaves the interest rate unchanged at 2.75 % in the face of uncertainty caused by US President Donald Trump’s tariff policies. The last time the Canadian central bank changed its rates was March 12, with a quarter-point reduction that left the indicator at the current level. Until then, the Bank of Canada had made seven consecutive r…
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