US EditionWhy the Bank of Canada could be done cutting its policy rate for now
CANADA, JUL 19 – The Bank of Canada keeps its policy rate steady at 2.75%, the neutral midpoint, amid resilient consumer spending and expected increased federal fiscal support, economists say.
- As of July 19, 2025, the Bank of Canada has maintained its key interest rate at 2.75 percent amid varying economic conditions across the country.
- This decision follows a year that saw 2.25 percentage points of rate cuts responding to pockets of economic weakness, despite surprising 2.2 percent GDP growth in Q1.
- Economic strength in some sectors contrasts with vulnerabilities such as weak household spending, rising unemployment near seven percent, and tariff-impacted regions like Windsor with over 11 percent unemployment.
- RBC chief economist Frances Donald stated that reducing interest rates is likely not suitable given the current economic conditions, and noted that the effects of recent rate cuts are only beginning to be felt throughout the economy.
- Analysts expect the central bank may keep rates on hold or deliver limited further cuts as increased federal spending and inflation concerns temper the need for more easing.
40 Articles
40 Articles
Why the Bank of Canada Could Be Done Cutting Its Policy Rate for Now
The Bank of Canada has largely kept to the sidelines as it tries to get a sense of how U.S. tariffs will impact the economy—and some economists think it might just stay there. After a quarter-point cut in March, the central bank held its benchmark interest rate steady at 2.75 percent in April and June. With last month’s jobs figures showing a surprise gain and core inflation levels holding steady at around three percent, economists now broadly e…
Sydney Morning Herald
The AgeWhy do we keep expecting rate cuts, even when the RBA tells us not to?
Holding out hope for something that we’ve been told is unlikely to happen is, psychologically speaking, only human. But it’s unfair to get grumpy with the RBA about it.
Winnipeg Free Press
Why the Bank of Canada could be done cutting its policy rate for now
Breaking News, Sports, Manitoba, Canada
OTTAWA—Experts believe that the Bank of Canada should not reduce its policy rate at this time, despite the trade war triggered by the United States. Royal Bank of Canada (RBC) is among the institutions that want the central bank not to reach its policy rate, despite the risks of economic slowdown in some sectors. Frances Donald, RBC's Senior Vice-President and Chief Economist, believes that the Bank of Canada will be able to reduce its policy ra…
Bank of Canada likely to hold at 2.75%
Canada’s economy experienced growth that exceeded expectations in the early part of 2025. However, beneath these optimistic headlines, it is evident that underlying issues are emerging. This presents a challenging scenario for the economists at the Bank of Canada as they face one of their most difficult decisions: should they lower interest rates or maintain their current strategy? The divided ... Read More The post Bank of Canada likely to hold…
Here’s why the Bank of Canada could be done cutting interest rates for now
The Bank of Canada has largely kept to the sidelines as it tries to get a sense of how U.S. tariffs will impact the economy — and some economists think it might just stay there. After a quarter-point cut in March, the central bank held its benchmark interest rate steady at 2.75 per cent in April and June. With last month’s jobs figures showing a surprise gain and core inflation levels holding steady at around three per cent, economists now broad…
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