Bank of America expects Bank of Canada to keep interest rates unchanged until 2027

The situation faced by Bank of Canada Governor MacLehose is different from that of global central bank peers, as Canada's core inflation index is close to 2%, and energy rich regions are benefiting in the short term from soaring oil prices. There is no risk of overheating in the Canadian economy, and after a slight contraction in the first quarter, the annualized growth rate in the second quarter is expected to exceed 2%. Traders have withdrawn their bets on the Bank of Canada raising interest rates by the end of this year, and Bank of America expects the Bank of Canada to maintain interest rates unchanged until 2027, even if the Federal Reserve resumes raising rates.