Canada's Central Bank May Keep Rates Unchanged Amid Energy Price Volatility, Economist Says

U.S. Bank economist Carlos Capristani maintains that the Bank of Canada will likely keep interest rates steady for the remainder of 2026. According to Jin10, Capristani acknowledges the risk of potential rate hikes due to fluctuations in energy prices over the coming months. He anticipates that the Bank of Canada Governor will emphasize the economic uncertainty stemming from Middle Eastern conflicts and discuss the potential impact of rising oil prices. Capristani expects the central bank to suggest that the timing of its next move remains uncertain, without indicating a specific direction. Traders have already factored in the possibility of at least one rate hike by the end of 2026.