Business & Finance
Bank of Canada Can Let Loonie Weaken and Skip Hikes, BofA Says
Key Points
Bank of Canada Can Let Loonie Weaken and Skip Hikes, BofA Says The Bank of Canada is likely to keep rates on hold through most of 2027 and allow the Canadian dollar to weaken further even if US monetary policy tightens, Bank of America says. The loonie fell as low as C$1.417 per US dollar on Thursday, its lowest intraday level since April 2025. The greenback has been rallying, and oil prices have been softening, as traders bet that the Federal Reserve will start raising interest rates soon...
Bank of Canada Can Let Loonie Weaken and Skip Hikes, BofA Says
The Bank of Canada is likely to keep rates on hold through most of 2027 and allow the Canadian dollar to weaken further even if US monetary policy tightens, Bank of America says.
The loonie fell as low as C$1.417 per US dollar on Thursday, its lowest intraday level since April 2025. The greenback has been rallying, and oil prices have been softening, as traders bet that the Federal Reserve will start raising interest rates soon and that the US-Iran peace deal will hold together.
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