The Bank of Canada doesn’t take a summer vacation. The fifth of eight interest-rate announcements this year will be made in the middle of summer — July 30 is the listed date. In such volatile economic times, it’s likely to attract more attention than mid-summer news usually does.
The fourth announcement (June 4) produced the widely-anticipated result: no change. The Bank kept the rate at 2.75 per cent for the second straight time.
The Canadian Real Estate Association was quick to analyze its impact on home sales, saying “…the Canadian housing market has the potential to heat up marginally by the end of 2025, believing that the uncertainty is the main thing holding people back, not interest rates. No significant rush is expected until the rates drop another full percentage point, something not currently expected this year.”
The 2.75 rate has been in place since March 12, following seven consecutive cuts stretching back to a year ago.
The likelihood it will remain unchanged again in July is currently estimated at 69 per cent. For the next “expected” rate cut is September 17, when one analyst estimates the likelihood of a .25 per cent drop is 64 per cent. That information is provided by WOWA.ca, a “personal finance encyclopedia for Canadians.”
The last two 2025 announcements for interest rates are planned for October 29 and December 10.