Bank of Canada Signals Rate Hold Could Weaken CAD, Says Mitsubishi UFJ on July 15

CAD-0.15%
According to Mitsubishi UFJ Bank analyst Derek Halpenny, reported by Jin10 on July 15, if the Bank of Canada signals a pause in rate hikes, the Canadian dollar may depreciate. Halpenny expects the central bank to release guidance indicating rates will remain unchanged, contradicting market pricing for additional rate increases before year-end. While the BoC may acknowledge inflation risks from the Iran conflict, moderate core inflation could provide room to wait, he said. Additionally, trade uncertainty and stock market volatility tied to AI concerns may further pressure CAD.
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