Bank of Canada Holds Key Interest Rate at 2.75% for Fourth Consecutive Month

The Bank of Canada has announced that it will keep its key interest rate at 2.75% for the fourth month in a row. This decision, widely expected by most economists and financial markets, comes at a time when the labor market remains strong despite ongoing trade tensions with the United States.

Stability Reflects the Central Bank’s Cautious Approach

Since March 2025, when the Bank of Canada last cut its key rate by a quarter of a percentage point, no further reductions have been announced. The institution is adopting a cautious stance, considering that current economic conditions do not yet warrant additional cuts.

While the annual inflation rate remains close to the 2% target, core inflation (which excludes certain volatile components) is still hovering around 3%. This higher level is prompting the central bank to take a measured approach to avoid renewed inflationary pressures.

A Strong Job Market

The Canadian economy continues to show resilience, particularly in the labor market. In June, a total of 83,000 jobs were created—well above expectations—reinforcing confidence in the overall health of the job market.

This strong employment growth acts as a stabilizing factor for the economy, but it also justifies the Bank of Canada’s caution in avoiding premature monetary easing.

Trade Tensions and Uncertainty

Trade tensions with the United States remain a key source of uncertainty. While they have not yet resulted in a significant slowdown, they are among the factors closely monitored by the central bank ahead of its future policy decisions.

Next Review in September

The next review of the key interest rate will take place on September 17. Until then, economists will be watching inflation, growth, and employment data closely to assess whether a change in monetary policy could be considered before the end of the year.

For any questions about this article or for advice on the real estate market, feel free to contact François Leduc. As a residential and commercial real estate broker, François is ready to assist you with your projects. He is proud to serve the regions of St-Bruno, Sainte-Julie, Varennes, and Boucherville.

François Leduc represents the company Remax Privilège and is dedicated to providing personalized expertise, tailored to your specific needs. Whether you are thinking of buying, selling, or simply want to learn more about the current market, François is a valuable and easily accessible resource to help you make the right decisions.

If you wish to contact him, you can reach him by phone at (514) 880-0245 or write to him at his email: fleduc@remax-quebec.com. To further explore the services offered, visit his website: www.francoisleduc.ca.

We invite you to contact François Leduc for any questions or real estate needs in the regions of St-Bruno, Sainte-Julie, Varennes, and Boucherville. His expertise and commitment to client satisfaction make him a preferred ally in your real estate projects.