> ## Content Index
> Fetch the complete content index at: https://www.theglobalbanker.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Bank of Canada Holds Overnight Rate at 2.75% in July 2025 Amid Sustained Tariff Uncertainty
- URL: https://www.theglobalbanker.com/bank-of-canada-holds-overnight-rate-2-75-july-2025-tariff-uncertainty/
- Published: 2025-07-30T16:46:00.000Z
- Updated: 2026-10-27T08:56:42.000Z
- Description: The Bank of Canada kept its policy rate at 2.75%, citing still-high uncertainty over US tariffs, some resilience in the Canadian economy and ongoing pressures on underlying inflation.
- Author: TGB Editorial Team
- Tags: Central Banks, Americas, #archive

The Bank of Canada held its overnight rate at 2.75% at its July 2025 fixed announcement date meeting, its third consecutive hold after a sequence of reductions that brought the policy rate down from its peak. The decision, announced through the press release on the Bank's website, reflected still-high uncertainty, signs of resilience in the Canadian economy and ongoing pressures on underlying inflation, with the Governing Council saying it was proceeding carefully.

#### ECONOMIC ASSESSMENT

The Bank estimated that GDP likely fell by about 1.5% in the second quarter as exports reversed after tariff front-running, while the unemployment rate had risen to 6.9% in June and underlying inflation was assessed at around 2.5%. The July statement did not signal an imminent cut, but said there may be a need for a reduction if a weakening economy puts further downward pressure on inflation and upward price pressures from trade disruptions are contained.

CPI inflation was 1.9% in June, but the Bank assessed underlying inflation at around 2.5% and cited ongoing pressures on underlying inflation as one reason to hold. 

#### TARIFF UNCERTAINTY

The Bank identified elevated uncertainty about the tariff impact as a key factor in its deliberations.