Bank of Canada Seen on Gradual Tightening Path Into 2027: NBC

National Bank of Canada's Taylor Schleich and Ethan Currie have maintained their Bank of Canada rate call. They expect a gradual tightening path into 2027.

The analysts acknowledged stronger Canadian labour market data and robust second-quarter GDP, but argue accumulated economic slack and data lags should delay the central bank's move.

Their view points to a cautious Bank of Canada stance rather than an immediate policy shift, with any tightening likely to proceed gradually.