Think tank Signal49 forecasts the Bank of Canada may keep policy rates unchanged
indefinitely, with its projection window running through 2030. It says
policymakers will aim to support a struggling economy until economic conditions normalize
toward the end of the decade. Signal49 expects GDP to rise just 0.5% this year
amid near-zero population growth and US trade policy uncertainty; higher energy
prices and weak consumer confidence will constrain consumer spending. Excluding
infrastructure and defense, government spending is expected to be limited. The
wider economic softness should reassure the BOC that inflation is likely
temporary.
