Bank of Canada Seen Holding Rates Through 2027 as Loonie Slides to C$1.417
Updated
Updated · Bloomberg · Jun 18
Bank of Canada Seen Holding Rates Through 2027 as Loonie Slides to C$1.417
1 articles · Updated · Bloomberg · Jun 18
Summary
Bank of America expects the Bank of Canada to keep interest rates on hold through most of 2027, even if the Federal Reserve starts tightening again.
C$1.417 per US dollar marked the loonie’s weakest intraday level since April 2025 on Thursday, yet the bank sees policymakers tolerating further currency weakness.
The pressure on Canada’s currency has come from a stronger US dollar and softer oil prices as traders bet on impending Fed rate hikes.
A US-Iran peace deal holding together has also weighed on oil, reducing support for the commodity-linked Canadian dollar.