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2025-07-31 01:45:09
The Bank of Canada announced on July 30th that it would maintain its benchmark interest rate at its current level of 2.75%. The Bank of Canada stated that Canada's economy experienced strong growth in the first quarter due to frontloading of exports in response to tariffs, but GDP is likely to decline by approximately 1.5% in the second quarter. This contraction is primarily due to a sharp reversal of exports following the frontloading of exports and a decline in US demand for Canadian goods due to tariff threats. Several economic indicators suggest that oversupply in the Canadian economy has increased since January. The Bank of Canada stated that despite some clarity on US trade policy in recent weeks, US trade actions remain unpredictable, trade negotiations remain volatile, and the threat of new sectoral tariffs persists. The Bank of Canada predicts that under the current tariff conditions, Canada's economic growth will rebound to approximately 1% in the second half of this year as exports stabilize and household spending gradually increases, but economic weakness will persist until 2026. If tariffs are eased, Canada's economic growth will rebound more quickly; if tariffs escalate, the economy will continue to contract throughout the year. In March this year, the Bank of Canada announced a 25 basis point cut in its benchmark interest rate to 2.75%, and maintained the benchmark interest rate unchanged in April and June. (CCTV News)
