The Bank of Canada is projected to maintain its policy rate at 2.25% through the duration of 2026. According to a report from BofA Securities economist Carlos Capistran, persistent geopolitical tensions and trade uncertainties are expected to anchor the central bank’s current position.
Recent energy market surges following military operations in Iran have introduced significant upside risks to the Canadian outlook. "Higher oil prices increase growth and inflation in Canada, so it goes against rate cuts," Capistran posited regarding the shift in economic tailwinds.
source https://www.investing.com/news/economy-news/boc-expected-to-hold-rates-amid-geopolitical-volatility--bofa-4557720
