Bank of Canada Holds Interest Rate at 2.75% in July 2025: Employee Rights

Bank of Canada’s Decision

On July 30, 2025, the Bank of Canada (BoC) held its key interest rate at 2.75%.

The Bank Rate remains at 3%, while the deposit rate was left unchanged at 2.70%.

“While some elements of US trade policy have started to become more concrete in recent weeks, trade negotiations are fluid, threats of new sectoral tariffs continue, and US trade actions remain unpredictable,” the central bank said in a news release.

The announcement comes just days before the US is set to slap Canada with a 35% duty on certain imports unless a new trade deal is reached before Aug. 1.

Third Consecutive Hold

The BoC’s decision to keep its key interest rate at 2.75% comes after several reductions in a row, which ended on March 12, 2025.

For a complete list of interest rate changes and detailed insights, visit our full rate change list.

Next Rate Announcement

🗓️ The next interest rate announcement from the Bank of Canada is scheduled for September 17, 2025.

Key Announcement Highlights

• Global growth is currently expected to slow modestly to around 2.50% by the end of 2025 before returning to around 3% over 2026 and 2027.
• Canada’s GDP likely declined by approximately 1.5% in the second quarter — mostly due to a sharp reversal in exports following the pull-forward, as well as lower US demand for Canadian goods due to the ongoing trade war.
• CPI inflation increased slightly in June to 1.9%. Excluding taxes, inflation rose to 2.5% last month, up from around 2% in the second half of 2024.
• The unemployment rate has moved up gradually since the beginning of 2025 to 6.9% in June. Wage growth has continued to ease.
• Many businesses are reporting costs related to sourcing new suppliers and developing new markets due to US duties. These costs could add upward pressure to consumer prices.

How Does this Affect Employment?

The BoC’s decision to keep interest rates lower is aimed at stimulating business activity and consumer spending, which will hopefully lead to increased hiring.

However, the overall impact on employment will depend on how the broader economy reacts to lower rates, inflation, and US trade uncertainty.

Lost Your Job?

In the event that you’re fired or let go, it’s crucial to understand your employment rights in Canada.

Non-unionized employees can get up to 24 months of severance pay when they lose their job. This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia (BC).

Severance is the compensation Canadians receive from their employer when they’re fired without cause.

• Fired for cause? It’s very likely that you’re still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.

Regardless of a company’s grasp on employment law, they’re legally required to provide proper compensation after firing staff.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

📺 WATCH: 5 Key Facts About Termination “Without Cause”

Contact an Employment Lawyer

If you’ve been fired or let go for any reason, reach out to the experienced employment law team at Samfiru Tumarkin LLP.

We’ve successfully represented tens of thousands of non-unionized workers in Ontario, Alberta, and BC.

In addition to severance package negotiations, our lawyers can assist you on a broad range of employment matters, including:

📞 Contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.