Bank of America: Expects Bank of Canada to stay put this year even if the Fed raises rates.

ME News: On July 1 (UTC+8), Bank of Canada Governor Tiff Macklem is in a different situation from other central bank counterparts around the world. Canada’s core inflation indicator is nearing 2%, and energy-rich regions in Canada are seeing short-term gains from the surge in oil prices. The economy does not appear to be at risk of overheating. After a slight contraction in the first quarter, the annualized growth rate in the second quarter is expected to exceed 2%. Traders have been gradually unwinding their earlier bets on the Bank of Canada raising rates by the end of this year. Bank of America expects the bank to keep interest rates unchanged until 2027, even if the Federal Reserve resumes rate hikes. (Source: Jin10)
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