Bank of Canada holds rate for third time as Canadian economy shows resilience

The Bank of Canada has decided to hold its key policy rate steady at 2.75%, for the third consecutive time, amid ongoing trade uncertainty.  

Scotiabank’s Chief Economist Jean-François Perrault returns to break down the central bank’s decision to hold once again, how Canada’s economy has been stronger than anticipated, possible economic scenarios ahead, and much more. 

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Key moments this episode: 

 1:10 - JF’s main takeaway from the decision 

1:35 - Did we learn anything from the Bank of Canada’s commentary or outlook? 

2:31 - Was a hold the right call in JF’s view? 

3:16 - JF walks us through the Bank of Canada’s three possible economic scenarios ahead 

5:18 - What scenario does JF think is most likely? 

5:55 - How unusual is it for the Bank of Canada to not have an economic forecast? 

7:14 - What is the current state of Canada’s economy? 

9:30 - A breakdown of Canada’s “unbelievable” employment numbers 

10:34 - Which sectors are feeling the impact of trade uncertainty the most? 

12:17 - Scotiabank Economics’ outlook for rate decisions for the rest of 2025 

15:07 - What’s happening in Canada’s housing market? 

16:54 - JF’s main takeaways for Canadians from the Bank of Canada’s decision and outlook?