Bank of Canada leaves its policy rate unchanged at 2.75%

As expected, the Bank of Canada has left its policy rate unchanged at 2.75% this morning on July 30, 2025. This marks the third consecutive rate hold.

The unpredictability of the current tariff situation, as well as higher-than-expected inflation, has left the Bank of Canada moving forward cautiously.

A rate hold means no changes for any variable-rate mortgage holders, as well as home equity lines of credit.

"While some elements of US trade policy have started to become more concrete in recent weeks, trade negotiations are fluid, threats of new sectoral tariffs continue, and US trade actions remain unpredictable. Against this backdrop, the July Monetary Policy Report (MPR) does not present conventional base case projections for GDP growth and inflation in Canada and globally. Instead, it presents a current tariff scenario based on tariffs in place or agreed as of July 27, and two alternative scenarios—one with an escalation and another with a de-escalation of tariffs."

The next scheduled date for announcing the overnight rate target is September 17, 2025.