Bank of Canada on Sidelines, Juggling U.S. Policy and High Oil Prices
Dow Jones
Yesterday
1044 ET - Canada's central bankers remain firmly on the sidelines, highlighting a difficult balancing act as they confront another spike in oil prices and fresh wave of U.S. protectionism, Desjardins' Royce Mendes says. The latest round of U.S. tariffs risk derailing recent economic momentum in Canada, but the Bank of Canada doesn't expect the levies will have a large direct impact on overall activity. Still, Mendes notes persistently high energy prices translated into a more hawkish tone from the bank. The economist continues to expect the policy rate will be unchanged at 2.25% for the remainder of the year, then nudged up a half percentage point in 1H 2027.
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