Bank of Canada 'More Likely' to Stay Put Amid Dueling Iran, Trade Wars -- Market Talk

1318 ET - The Bank of Canada is "much more likely to stay on hold" as officials try to strike a balance between the sharp rise in energy prices and the escalation of US-Canada trade tensions, says Douglas Porter, chief economist at BMO Capital Markets. In his week-ending note, he says BMO is leaning toward that the newly proposed 50% tariff on certain Canadian goods will not be imposed as scheduled on Aug. 19. Nevertheless, Porter says the tariff threat serves as "loud reminder that trade will act as a drag on growth," particularly for Canada. He says BOC will likely exhibit patience, partly because its preferred gauges of core CPI sit below 2% for the first time in 6 years. (Paul.Vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

July 24, 2026 13:18 ET (17:18 GMT)