Wednesday July 30, 2025 | VICTORIA, BC [Posted at 10:30 am PT]
Socioeconomic analysis by Mary P Brooke | Island Social Trends
The Bank of Canada has maintained its overnight interest rate at 2.75% today. There was a “clear consensus” for that stance, said Bank of Canada Governor Tiff Macklem.
“With still high uncertainty, the Canadian economy showing some resilience, and ongoing pressures on underlying inflation, Governing Council decided to hold the policy interest rate unchanged,” the Bank’s rate announcement revealed at 6:45 am (PT) today.
Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers addressed the media today from Toronto.
Not changing the interest rate was expected by most economic observers as there is too much uncertainty in the economic under conditions of the tariff trade war launched by the United States at the start of 2025.
The Bank of Canada identified uncertainty in its announcement last month. This month “the impact of tariffs” is the new uncertainty, but Macklem says there could be upward pressures on consumer prices.
This is “a period of global upheaval”, said Macklem today.
Too cautious:
Ontario Premier Doug Ford says he is “shocked” at no lowering of the interest rate today. Ford posted in social media:
“I’m shocked by this decision,” said Ford who has led the Council of the Federation as its chair for the past year. Of all the premiers he seems to have caught the attention of the US administration with his ‘tough talk’ style in the media.
“As we stare down economic uncertainty that’s putting hundreds of thousands of jobs at risk, it’s never been more important to stimulate economic growth and keep Canadians working. Rather than wait around and let President Trump’s tariffs do even more damage to our economy, the Bank of Canada needs to cut interest rates now.”
Ford leads this country’s largest provincial economy, much of it involving trade with the United States.
Bank’s response to Macklem:
“We take our decisions independently of the political process,” said Macklem in response to Ford’s remarks today.
Macklem added in his response to media on this, that the Bank of Canada aims to make sure that tariffs don’t contribute to inflation.
Regional and household survey outreach:
The Bank of Canada said today that they are “ready to respond to new information”, and that includes their work to gain more regional information and to do “survey outreach” with households.
This is part of a slow recent move to ‘get out of Bay Street’ and connect with real businesses and consumers across the country.
Next interest rate announcement in September:
The next interest rate announcement comes up on September 17, as part of the 2025 rate announcement schedule:
- Wednesday, January 29
- Wednesday, March 12
- Wednesday, April 16
- Wednesday, June 4
- Wednesday, July 30
- Wednesday, September 17
- Wednesday, October 29
- Wednesday, December 10
===== RELATED:
- NEWS SECTIONS: BANK OF CANADA | BUSINESS & ECONOMY | TARIFFS & TRADE
- Bank of Canada holds key interest rate at 2.75% as US tariff deadline looms (July 30, 2025)
- Bank of Canada may coast along with July 30 announcement (July 14, 2025)
- June 4: Bank of Canada holds interest rate at 2.75% (June 4, 2025)
- Bank of Canada holds interest rate at 2.75% on April 16 (April 16, 2025)
- Bank of Canada Governor: more uncertainty, tough decisions as trade war escalates (March 20, 2025)
- Bank of Canada drops interest rate to 2.75% (March 12, 2025)
- Significant interest rate drop needed on March 12 (February 26, 2025)