Cross-Cutting Factors Lead Bank of Canada to Remain on Hold
Dow Jones
Yesterday
1036 ET - The Bank of Canada leaves its policy rate unchanged thanks to a fundamental economic story for Canada that remains largely unchanged despite considerable noise and uncertainty, Fitch Ratings' Joshua Grundleger says. Headline inflation in the country is still elevated, given the ongoing oil price shock, though this has yet to meaningfully pass through to core inflation. The economy outperformed in 2Q, growing 3.3%, yet pressure from the trade spat with the U.S. has heated up and that could weigh on the economy. With these factors in mind, Fitch expects the central bank to hold rates through 2028.
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