Bank of Canada holds interest rate for third time at 2.75%
CANADA, JUL 30 – The Bank of Canada paused rates at 2.75% due to trade tensions and inflation near target, with future cuts possible if economic weakness persists, economists say.
- The Bank of Canada held its key policy interest rate steady at 2.75% for the third consecutive time on Wednesday in Ottawa.
- The decision follows ongoing uncertainty over U.S. tariffs and trade talks ahead of the August 1 deadline, which have weighed on the Bank's outlook.
- Core inflation remains elevated near 2.5%, the economy added 83,100 jobs in June, and the Bank reported a widening output gap between-1.5% and-0.5%.
- Douglas Porter indicated that the Bank finds it acceptable to keep interest rates steady at 2.75%, which represents the midpoint of its neutral range, while staying open to the possibility of reducing rates in the future.
- The Bank is monitoring trade developments closely and stated that economic data will guide any future policy changes, with rate cuts possible if inflation pressures ease and the economy weakens.
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Canada’s economy is ‘no longer deteriorating,’ economist says as BoC holds rates
The Bank of Canada held its key interest rate steady at 2.75 per cent for the third consecutive decision on Wednesday, and one economist says resiliency in the Canadian economy made it easier for the central bank to remain on the sidelines.
·Canada
Read Full ArticleBank of Canada holds key interest rate, citing U.S. trade unpredictability
Today, the Bank of Canada maintained its key interest rate at 2.75 per cent — the same level it’s been since March — citing the continued lack of clarity around tariffs and the outcome of Canada-U.S. trade talks.
·Canada
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Total News Sources65
Leaning Left6Leaning Right7Center11Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 25%
C 46%
R 29%
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