0955 ET - Fitch Ratings reaffirms its call that the Bank of Canada will keep its policy rate on hold through 2026 after reviewing April CPI data. The jump in inflation due to gas prices was widely expected, says Jessica Hinds, an economist at Fitch, because the consumer carbon tax--which PM Mark Carney ditched in March, 2025--fell out of the year-over-year comparison. Inflation did accelerate, 2.8%, from the prior month but fell short of the 3%-plus expectations. Stripping out gasoline, Hinds notes that inflation in Canada decelerated in April to 2% from 2.2% the prior month, and both of the BOC's preferred gauges of core CPI eased in April. "The softness of the labor market will help to dampen broader price pressures," she says. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

May 19, 2026 09:55 ET (13:55 GMT)

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