1045 ET - Desjardins continues to anticipate the Bank of Canada will remain on the sidelines through the rest of the year, after leaving the policy interest rate unchanged a sixth time in a row. Economist Royce Mendes notes the tone of the central bank's communications is very neutral, though markets are treating the releases as dovish likely because the bank removed reference to consecutive rate increases. Traders are pricing in a roughly 67% chance the Bank of Canada raises rates. Mendes continue to disagree, arguing the probability of rate cuts is at least as likely as rate rises. Still, he says significant changes in the outlook for oil prices or trade with the U.S. could swing the view. (robb.stewart@wsj.com, @RobbMStewart)

(END) Dow Jones Newswires

July 15, 2026 10:45 ET (14:45 GMT)

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