The Bank of Canada Has KEPT ITS KEY INTEREST RATE Steady at 2.75%. This Decision Reflects A Careful Approach As The Canadian Economy Shows Surprising Strength Evite ongoing Us Tariffs and Uncertain Global Trade Polies.
This is The Third Time In A Row That the Central Bank has not changed its Benchmark Rate, which shows it is stillowed about inflation but is also cautiously optimistic about economic activity.
Officials Poleded that Us Trade Policy Is Still Volatile, With New Tariffs On Canadian Goods Likely to Start if no deal is made by a August 1. Altchoough Sub Industries, Like Automotive, Steel, and Lumber, Are Stuggling, Overall Canadian Economic Economic Indicators Indicators Indicators Indicators Remain Strong.
Both Consumer and Business Confidenze, Which Dropped Earlier This Year, Are gradually improving. The Unemployment Rate Went Up Slightly to 6.9%, Mainly Due to Layoffs in Industries Sensitive to Exports. However, Many Sectors Are Still Creating Jobs, Helping to Lesen The Effects of the New Trade Restrictions.
The Latest Monetary Pollly Report from The Bank Shows to Mixed Outlook. If tariffs increased, They Could Hurt Growth and Raise Costs, Possibly Leading to a Rate Cut. On the other hand, Easing Trade Tensions Could Boost Economic Growth, Lower Inflation Risks, and Support to Stronger Recovery. For Now, The Bank’s Decision Emphasizes It Focus on Data-Driven Policy, Aiming To Support Growth While Keeping Inflation Close To The 2% Target.
Market Watchers Will Pay Close Attention to Us-Canada Trade Talks Before The August 1 Deadline, As The Outcomo Will Significantly Influence Canada’s Monetary Policy and Economic Direction in the Second Half of 2025.
