Bank Of America Expects Bank Of Canada To Hold Rates Through 2027

Bank of America said it expected the Bank of Canada to keep interest rates unchanged through 2027, even if the U.S. Federal Reserve resumes raising rates. According to Jin10, Bank of Canada Governor Tiff Macklem faced a different set of conditions than many other central bank leaders, with Canada’s core inflation measures near 2% and energy-rich regions seeing short-term gains from a surge in oil prices. The report said the economy appeared to show no signs of overheating. After a slight contraction in the first quarter, the economy was expected to post annualized growth of more than 2% in the second quarter. It added that traders had gradually pulled back earlier bets that the Bank of Canada would raise rates by the end of this year.