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.

If this article on the real estate field was useful to you and you have additional questions, do not hesitate to contact Kate Carmichael, your residential real estate broker. Based in Quebec City, she serves the regions of Ste-Foy, Sillery, and Cap-Rouge.

Representing the well-established firm Royal LePage Blanc & Noir, Kate is available to answer all your real estate inquiries. You can reach her by phone at (418)953-1441 or by email at kcarmichael@royallepage.ca. Visit her website for more information at the following address: www.katecarmichael.com.

We invite you to get in touch with Kate Carmichael for any questions or to assist you with your real estate projects in the Quebec City area. Her expertise and knowledge of the market are valuable assets for achieving your real estate aspirations.