Standard Chartered predicts the Bank of Canada will hold rates at 2.25% through 2027, defying market expectations for a steeper rate hike cycle.
Standard Chartered economist Dan Pan projects the Bank of Canada will maintain a policy rate of 2.25% through 2026 and 2027. This outlook significantly diverges from current market expectations of a more aggressive tightening cycle, creating a bearish outlook for the Canadian Dollar as interest rate differentials may fail to widen in favor of the currency.
The bank expects the policy rate to remain at 2.25% through the end of 2026 and throughout 2027.
The forecast contradicts current market pricing, which anticipates a much steeper tightening cycle for the Bank of Canada.
Standard Chartered economist Dan Pan projects the Bank of Canada will maintain its policy rate at 2.25% through 2027. This forecast sharply diverges from current market expectations, which anticipate a more aggressive tightening cycle in the coming years.
Standard Chartered economist Dan Pan expects the BoC to keep the policy rate steady at 2.25% through the end of 2026 and 2027.
The forecast contradicts current market pricing, which expects a much steeper tightening cycle for the Canadian central bank.