07/30/2025
🇨🇦 Bank of Canada Rate decision July 30, 2025 - No change
Summary:
We expect the Canadian economy to post a small negative reading (-0.8%) in Q2 and (-0.3%) in Q3, bringing growth for the year to 1.2%. The next Governing Council decision date is September 17, which will give the Bank time to assess the underlying momentum in inflation and the dampening effect of tariffs on economic activity.
If inflation slows over the next couple of months and the economy slows in Q2 and Q3 as widely expected, the Bank will likely cut rates one more time this year, bringing the overnight rate down to 2.50%, within the neutral range for monetary policy. Bay Street economists have varying views on the rate outlook (see chart above). While the Fed will hold rates steady today, despite the incredible pressure coming from the White House, the Bank of Canada could well cut rates one more time this year.
Kevin Ashcroft, Mortgage Broker
DLC FC Funding FSRA #10671
33 Maywood Ave., St. Catharines ON L2R 1C5
905-933-6674
www.callkevin.ca
