Bank of Canada Officials Split on Economic Rebound

The Bank of Canada's governing council was split on the sustainability of recent economic growth, according to minutes from their July meeting. The central bank left its benchmark interest rate at 2.25% for a sixth consecutive time.

The economy showed signs of rebounding in the second quarter, with higher global oil prices and a recovery in the housing market supporting growth. Business surveys and increased exports also suggested companies were adapting to tariffs and trade uncertainty.

However, some council members expressed concerns about the durability of this growth beyond the near term. They agreed to monitor data closely for signs that growth was broadening as forecasted.

The Bank of Canada expects real GDP rose 2.5% on an annualized basis last quarter and forecasts modest growth to continue through the second half of the year and into 2027.