Bank of Canada Seen Moving to More Neutral Stance By Year End -- Market Talk

Dow Jones03-25 19:40

0740 ET - Although nearterm growth in Canada has softened, it's likely to be a temporary slowdown and so not something the Bank of Canada will react to, Scotiabank reckons. It also doesn't expect the central bank will react to the direct impact of higher oil prices on inflation, even if the shift in the balance of inflation risk does argue for caution. As a result, Scotiabank analysis assumes the Bank of Canada will begin gradually removing monetary stimulus and move toward a more neutral stance by year end. That suggests it will leave interest rates on hold near-term, until the USMCA renegotiations are resolved, before lifting rates three times in the second half of this year. (robb.stewart@wsj.com; @RobbMStewart)

(END) Dow Jones Newswires

March 25, 2026 07:40 ET (11:40 GMT)

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