FINWIRES · TerminalLIVE
FINWIRES

RBC Previews Next Week's Bank of Canada Policy Meeting

By

-- The Bank of Canada will keep rates unchanged at next Wednesday's policy meeting, said RBC.

If the policy language shifts, it will be only marginal, but likely in the direction of more hawkish than last time, noted the bank.

Since the last meeting where the BoC sounded concerned on growth, the labor market has stabilized, Q1 gross domestic product is tracking close to its forecast, the Business Outlook Survey had a slightly more upbeat tone and financial conditions have loosened. The latest core inflation prints were neutral after four straight low months, pointed out RBC.

The bank's view remains the BoC is on hold in this year and hikes in 2027, with risks of hikes being brought forward into H2 greater -- but a slow burn evolution -- than the small chance of reductions this year, stated the bank.

The annual review of the neutral rate and potential GDP growth should be "non-events," with no change in either RBC's modal expectation.

Current pricing for one hike in 2026 is around "fair" and the bank doubts even if the BoC is marginally more hawkish, that Canada can get back to more than 1.5 hikes without oil surging or data strengthening.

Related Articles

Australia

Mizuho Securities Raises Price Target on Apellis Pharmaceuticals to $41 From $20, Maintains Neutral Rating

Apellis Pharmaceuticals (APLS) has an average rating of hold and mean price target of $40.82, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $40.95, Change: $-0.05, Percent Change: -0.11%

$APLS
Research

Mizuho Securities Downgrades Terns Pharmaceuticals to Neutral From Outperform, Trims Price Target to $53 From $54

Terns Pharmaceuticals (TERN) has an average rating of hold and mean price target of $53, according to analysts polled by FactSet.

$TERN
Research

Research Alert: CFRA Reiterates Buy Opinion On Shares Of Booking Holdings Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target price by $8 to $196, 19x our 2026 EPS estimate (unchanged) and a discount to its 23x five-year average forward multiple, reflecting geopolitical risks. We lower our 2026 EPS to $10.33 from $10.74 and 2027's to $11.58 from $12.07, primarily reflecting lower gross bookings growth from the Middle East conflict. We maintain our Buy opinion as shares are undervalued given long-term competitive strengths and temporary geopolitical headwinds. The company's Connected Trip platform and Genius loyalty program are supporting higher-margin direct bookings, suggesting AI initiatives are strengthening consumer engagement rather than disintermediating the platform. Strong free cash flow supports future shareholder returns, including $3.6 billion in Q1 buybacks. While the Middle East conflict will impact Q2 bookings, BKNG has a history of seeing travel rebound following geopolitical or economic disruptions. U.S. room night growth accelerated in Q1 to a low-teens range, providing near-term momentum.

$BKNG