Bank of Canada May Delay Rate Cut Amid Trade War Uncertainty

A recent report by Standard Chartered suggests that the Bank of Canada (BoC) may keep its policy rate at 2.25% and delay a 25bps cut to December.

This decision is based on a Q2 growth rebound, which reduces the need for immediate monetary easing.

Despite recent US tariffs, policymakers may want to wait for more data to gauge their impact on growth and inflation.

However, markets are pricing in c.65bps of hikes by mid-2027, which Standard Chartered economist Dan Pan believes is excessive.