The Bank of Canada just made its move

Bank of Canada Holds Interest Rate at 2.75%

The Bank of Canada has decided to keep its key interest rate steady at 2.75%, as many expected.

Why? The economy is slowing slightly, but not drastically. There’s still a lot of uncertainty around U.S. trade policies, which makes it tricky to predict what’s next.

The Bank says it’s keeping an eye on inflation, which has stayed stronger than expected in some areas. They’ll continue watching closely before making any future changes to rates.

"We understand the challenges the Bank of Canada is currently facing, given the pervasive economic uncertainty and needing to be forward looking at a time when U.S. trade policy is highly unpredictable. We call for the Bank of Canada to lower its benchmark policy interest rate by a quarter, to 2.50%, at its next rate decision, given a weaker labour market, softening real GDP and declining business investment. Our interests, as always, lie with Canadian mortgage holders and households, who are facing pressure in this uncertain economic environment.”

 - Lauren van den Berg, President and CEO of Mortgage Professionals Canada.

The next rate announcement is scheduled for Wednesday, July 30th.