The Bank of Canada has chosen to maintain its key rate at 2.75 % for a fourth consecutive decision, a measure largely anticipated by economists and financial markets.
This status quo intervenes in a still fragile economic context, marked by uncertainty linked to trade tensions with the United States.
“Today, the Management Board has maintained the sentence rate at 2.75 %,” confirmed the Central Bank in its declaration. A decision qualified as prudent by several observers.
The Canadian economy is not in recession, either the global economy. Even we say that it is better than expected. I think it was a good war of the Bank of Canada to have maintained its rate.
Patrick Leblanc, Professor at the Higher School of Public and International Affairs at the University of Ottawa
Governor Tiff Macklem has recognized that the customs duties imposed by the United States, in particular within the framework of a resumption of protectionist policies under Donald Trump, maintain a climate of uncertainty. However, he stressed that the Canadian economy continues to be resilient.
However, the decision is unanimous. Some Canadians hoped for a drop in rates to relieve the weight of debts, in particular in a context of mortgage renewal.
Ontario Prime Minister Doug Ford has been particularly critical on social networks, describing the decision of “shocking” and saying that “hundreds of thousands of jobs are threatened”. He urges the bank to quickly lower rates to support growth.
On the side of the real estate market, the reaction is more nuanced. The stability of the rates is generally welcomed, but the structural issues, such as the cost of materials and labor, weigh heavily.
The pricing war has an impact on building materials, on the cost of the workforce it complicates affordability. The problem is larger than regional interest rates.
Jean-Marc Blais, vice-president of the Outaouais real estate chamber
In parallel, the American federal reserve also opted for the status quo on Wednesday, now its own unchanged rates.
With information from Vincent Poirier