Standard Chartered economist Dan Pan anticipates that the Bank of Canada (BoC) will maintain its policy interest rate at 2.25% for the time being. According to FX Street, Pan expects the central bank to postpone a planned 25 basis points rate cut until December.
This delay is primarily attributed to a rebound in economic growth observed in the second quarter (Q2), which suggests that the BoC will hold off on easing monetary policy until later in the year. The Canadian dollar may find some support from this outlook as rate cuts are deferred.
For Japanese investors, the timing of BoC’s policy moves remains important, especially given the impact of Canadian dollar fluctuations on commodity-linked assets and FX portfolios exposed to North American markets.