1019 GMT - The Bank of Canada is likely to leave interest rates on holdindefinitely as policymakers try to support a struggling economy before conditions normalize late this decade, according to a forecast from Canadian think-tank Signal49. The independent forecasting group expects Canada's GDP will grow a meager 0.5% this year, as the country deals with little-to-no population growth and uncertainty over U.S. trade policy. Higher energy prices and low consumer confidence will limit growth in consumer spending, Signal49 says. Excluding infrastructure and defense, government spending will be limited, the group adds. "Broader weakness in Canada's economy should give comfort to the Bank of Canada that the inflation will be temporary," says Signal49. Its forecast period runs until 2030. (paul.vieira@wsj.com, @paulvieira)

(END) Dow Jones Newswires

July 09, 2026 06:19 ET (10:19 GMT)

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