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

Bank of Canada’s Decision

On June 4, 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%.

“The US administration has continued to increase and decrease various tariffs,” the central bank said in a news release.

“China and the United States have stepped back from extremely high tariffs and bilateral trade negotiations have begun with a number of countries. However, the outcomes of these negotiations are highly uncertain, tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high.”

Second 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 July 30, 2025.

Key Announcement Highlights

• Canada’s economic growth in the first quarter came in at 2.2% — slightly stronger than the bank expected. The composition of GDP growth was largely as anticipated.
• The labour market has weakened, particularly in trade-intensive sectors. Unemployment has risen to 6.9% and the economy is expected to be considerably weaker in the second quarter of 2025.
• Housing activity was down, driven by a sharp contraction in resales. Government spending also declined.
• Consumption has slowed from its strong pace in the fourth quarter of 2024, but continues to grow despite a significant drop in consumer confidence.
• In April, inflation rose 2.3% (excluding taxes), which is slightly stronger than the bank expected. Governing Council will continue to monitor how inflationary pressures are evolving.

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.