Bank of Canada holds its key interest rate steady as inflation strengthens, economy weakens

The Bank of Canada announced that it has held its policy interest rate steady at 2.75% for the second consecutive time as tariff uncertainty continues to loom, the Canadian economy shows signs of weakness and inflation persists.  

Scotiabank’s Chief Economist Jean-François Perrault is back on the show to break down the central bank’s latest decision, what’s happening with inflation and in Canada’s housing market, why he doesn’t expect any interest rate cuts this year, and much more.   

For legal disclosures, please visit http://bit.ly/socialdisclaim and www.gbm.scotiabank.com/disclosures 

 

Key moments this episode:  

1:00 — What is JF's main takeaway from the Bank of Canada's latest decision? 

1:43 — JF breaks down Canada's latest GDP numbers and how that factored into the central bank's decision to hold 

4:03 — A closer look at inflation in Canada and how key measures are rising 

6:35 —JF's outlook for the economy in the coming months 

10:00 — Why JF isn't expecting the Bank of Canada to announce a cut this year 

14:06 — What's happening in the Canadian housing market? If interest rates stay put for awhile, what kind of ripple effect could that have? 

16:29 — The main takeaway from the Bank of Canada's decision and outlook for Canadians