Regulatory Alerts2026-07-15
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Monetary Policy Report July 2026
The Bank of Canada projects that Canadian economic growth will pick up and rise above potential output growth in 2027 and 2028 following a weaker start to 2026. Inflation is expected to ease gradually from its recent peak above 3% as cost pressures fade and excess capacity is absorbed, returning to target. The report identifies the evolution of trade relations with the United States and the war in the Middle East as the primary risks to the inflation outlook.
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