Consequently,
Bank canada maintains its master:
The Bank of Canada has announced that it maintains the target funding rate one. Therefore, day to 2.75 %, a decision motivated by an unstable international economic context, especially due to the United States’s commercial policy. Consequently, The official discount rate remains at 3 % and the rate of remuneration for deposits, at 2.70 %.
In his Report on monetary policy From July, the bank stresses that US trade negotiations remain unpredictable. However, Rather than publishing projections of GDP. Similarly, inflation growth, the institution offers three economic scenarios: a maintenance scenario, a climbing scenario and a scenario of de -escalation of customs duties.
Canadian resilience despite the disturbances – Bank canada maintains its master
The global economy, although weakened, shows resilience. Meanwhile, In the United States, growth has slowed down, but the job market remains strong. Similarly, Inflation has increased slightly. Similarly, In the euro zone. economic activity bank canada maintains its master is growing timidly, while in China, the drop in exports to the United States is offset by an increase to other countries.
Canada, on the other hand, feels the counterpouss of American customs duties. After notable growth in the first quarter of 2025, the GDP would have decreased approximately 1,5 % in the second quarter. This decline is explained in particular by a weakening of exports. Uncertainty also weighs on household investments and expenses. The unemployment rate has reached 6.9 % in Juneand wage growth slows down.
Prudent perspectives
In the main scenario envisaged by the bank. growth slowly resumes by the end of 2025, reaching approximately 1 %before going back to 2 % by 2027. If business tensions are calmed down, faster recovery is possible. Conversely, in the event of climbing, a contraction of the economy could extend until the end of the year.
Inflation measured by the bank canada maintains its master IPC has established 1.9 % in Juneand at 2,5 % If you exclude taxes. The bank notes that inflationary pressures remain. in particular due to the increase in housing costs, although the latter slows down. Costs related to the reorganization of supply chains, necessary to bypass customs duties, could also increase prices.
Apchq reaction
Reacting to the announcement. David Goulet, director of the economic service of theAssociation of Quebec Construction and Housing Professionals (APCHQ)underlines :
“The Canadian economy demonstrates a unexpected resilience Faced with economic uncertainty and the acceleration of fundamental inflation. In this particular context, the Bank of Canada decided to maintain its key rate at 2.75 %. Housing costs are the main engine of inflation in Canada. but this pressure gradually slows down, good news in these difficult times. ” – David Goulet. director of the APCHQ Economic Service
The Bank of bank canada maintains its master Canada is prudent, closely monitoring the impact of business tensions on growth, investments and prices. It does not exclude a possible drop in its key rate if the inflationary pressures diminish more.
The next date of establishment of the target funding rate a day is September 17, 2025.
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