Bank of Canada Governors Divided on Economic Rebound

Economists expect the Bank of Canada to hold interest rates steady through the rest of this year, despite some bond market bets on potential rate hikes.

The central bank's governing council was more confident in the economy's second-quarter rebound but divided on its sustainability beyond the near term, according to the July meeting summary released by the Bank of Canada.

TD Securities said the deliberations were 'relatively balanced' as the Bank noted the economy is adjusting to recent shocks and growth would strengthen going forward.

RBC expects the bank to sit tight well into next year, with policymakers holding rates at 'borderline accommodative levels through 2026.'