Sarah Mills: Canadians travelling to the U.S. are down dramatically
Sarah Mills says Mexico and Europe became a destination for Canadians in January, showing the elbows-up approach is havi...
OTTAWA — The Bank of Canada is holding its benchmark interest rate steady at 2.75 per cent for a third straight decision as the central bank grapples with tariff uncertainty.
The central bank says the Canadian economy is showing some resilience in the face of tariffs from the United States, but U.S. trade policy is still unpredictable.
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Governor Tiff Macklem says the risk of a severe global trade war has diminished over the past few months, but Canada’s economy likely contracted last quarter amid tariff impacts.
If the current tariff situation persists, the Bank of Canada sees the economy rebounding through the rest of the year with inflation staying close to its two per cent target.
Macklem says the bank could return to rate cuts if the economy weakens from here and inflation tied to tariffs remains contained.
He says the Bank of Canada is still going to be less forward-looking than usual but will be watching how trade disruptions spill into consumer prices and business activity.
This report by The Canadian Press was first published July 30, 2025.
The Canadian Press
