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 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 defence,

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 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 defence, government spending is expected to be limited. The wider economic softness should reassure the BOC that inflation is likely temporary.