Bank of America says the Bank of Canada can keep interest rates unchanged for an extended period and allow the Canadian dollar to weaken further, even if US monetary policy becomes more restrictive. Bloomberg reports that the bank’s view is that the Bank of Canada is likely to keep rates on hold through most of 2027, rather than delivering additional hikes. The Financial Post similarly reports that, in Bank of America’s assessment, there is no case for the Bank of Canada to consider rate increases soon, despite the impact that a weaker currency could have on economic and inflation conditions. The reports frame Bank of America’s argument around the idea that the Canadian dollar’s depreciation would not, by itself, require earlier tightening from the Bank of Canada. Both outlets present the stance as a forecast by Bank of America rather than an official decision by the Bank of Canada, and they emphasize the expectation of continued policy restraint through the coming years.