While the Bank of Canada kept interest rates unchanged at 2.75% for a third consecutive meeting today, the communications showed policymakers placing greater emphasis on the downside risks to growth from tariffs than the upside risks to inflation, which it believes should “gradually unwind”. Today’s decision therefore leaves us happy with our non-consensus call that the Bank will cut twice more this year.
We will be discussing the Canadian macro and policy outlook in a special Drop-In at 12pm ET / 5pm BST. Register here for the 20-minute online briefing.
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