Economists Join Traders in Predicting BOC Will Keep Rates Steady

Economists are abandoning their calls for monetary-policy easing in Canada next week as traders price in only a small chance of an interest-rate cut and the nation’s output beat all estimates.

The Canadian dollar rose as much as 0.5% to trade at 1.3740 per US dollar on Friday after gross domestic product for the first three months of the year grew faster than at the end of 2024. Bank of Montreal and Royal Bank of Canada now expect no changes in rates next week, contrary to the cut they saw before.