BoC Holds Rates Steady Amid Trade Tensions
Standard Chartered economist Dan Pan expects the Bank of Canada to keep its policy rate at 2.25% and delay a 25bps cut until December, citing a Q2 growth rebound that reduces the need for immediate easing.
The recent US tariffs pose downside growth risks, but high odds of trade de-escalation are also in play.
Markets are pricing in 65bps of hikes by mid-2027, which Standard Chartered believes is excessive.