Bank of Canada bides its time, but cuts still coming

The Bank of Canada avoided surprising markets by keeping its policy rate at 2.75% today, as it continues to wait to see the full impact of US trade policy on the economy. Nonetheless, the Bank confirmed that its bias remains toward loosening policy further. With the economy losing momentum and upside risks to inflation fading, we remain of the view that the Bank will cut the policy rate to 2.0% this year.

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