Bank of America Sees Bank of Canada Pausing at 2.25% but Flags Hawkish Risk
Bank of America anticipates the Bank of Canada will keep its policy rate at 2.25% at the July 15 meeting, while warning that inflation running above target could prompt a hawkish signal. The bank notes modest improvements in Canadian activity and the labour market, ongoing trade uncertainty, market pricing that favors a pause, and upside risk to ra…