1454 ET - The Bank of Canada should keep its policy rate unchanged next week, and only consider hiking in about one year's time, says the CD Howe Institute's shadow monetary-policy council. The Canadian think tanks says encouraging GDP data is welcome, although it's not clear the momentum is sustainable due to trade uncertainty, trouble with the U.S.-Iran accord, and existing spare capacity. The nine panel members also debated the level of Canada's potential output. Some panelists wondered whether the BOC's estimate for the neutral rate--or the level at which rate policy neither adds nor subtracts from growth--was too high, citing how interest-sensitive housing activity has failed to mount a rebound. (Paul.Vieira@wsj.com, @paulvieira)
(END) Dow Jones Newswires
July 09, 2026 14:54 ET (18:54 GMT)
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