Canada's Central Bank May Go Dovish Amid Trade Tensions

A new report from BMO suggests that trade tensions with the US could lead to a more dovish monetary policy from the Bank of Canada.

The bank's recent interest rate hike may be reversed, according to BMO analysts, as they expect the Canadian economy to slow down due to rising trade uncertainty.

The report notes that the Canadian dollar has weakened against its US counterpart, which could have a negative impact on the country's economy.

BMO analysts predict that the Bank of Canada may cut interest rates in response to the economic slowdown and trade tensions.