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 you found this article on real estate informative and would like more information, do not hesitate to contact Emmanuel Paquin, your residential and commercial real estate broker. Emmanuel serves the Montreal and Kirkland regions and is affiliated with the company RE/MAX ROYAL (JORDAN) INC.. You can reach him by phone at (514) 757-6268 or visit his website at the following address: https://emmanuelpaquin.com/.

For those specifically targeting the Montreal residential market, Françoise Cardyn is also available to answer your questions. As a residential real estate broker at RE/MAX ROYAL (JORDAN) INC., she can be contacted at (514) 557-4523. For more information or to send an email, visit https://emmanuelpaquin.com/.

With the Emmanuel Paquin Team, you benefit from the expertise of a strong and experienced team in real estate in Montreal. For any questions, contact us at (514) 757-6268 or by email at info@emmanuelpaquin.com.

We hope this article has been helpful to you and we invite you to contact our brokers for any real estate questions or needs in Montreal and Kirkland.