Mortgage Blog
Bank of Canada Rate Announcement - July 30, 2025
July 30, 2025 | Posted by: Crescent Mortgage Corp.
As was widely expected, the BoC maintained its target for the overnight at 2.75% today, as policymakers confront persistent inflation pressures and a mixed bag of economic signals.This marks a third consecutive hold, following a rapid 225 bps easing cycle between June 2024 and March 2025.
While growth has clearly slowed, the Bank’s preferred core inflation metrics remain too high for comfort. CPI inflation was 1.9% in June, up slightly from the previous month. If the impact of taxes is removed, inflation rose to 2.5% in June, up from around 2% in the second half of 2024. This is due in large part to an increase in non-energy goods prices and high shelter price (mortgage and rent) inflation.
Despite the ongoing tariff saga continuing to fuel uncertainty, the Canadian economy has shown signs of resilience. The BoC reiterated that they will continue to assess “the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs related to tariffs and the reconfiguration of trade.” Should a weakening economy put downward pressure on inflation and the upward price pressures of tariffs are contained, the BoC is ready to support economic growth while ensuring inflation remains well controlled.
The next interest rate announcement is scheduled for September 17, 2025