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Scotiabank Says Bank of Canada Pricing Shifts Toward Half of a Quarter-Point Hike Amid Middle East Conflict

BY MT Newswires | ECONOMIC | 08:33 AM EST

08:33 AM EST, 03/03/2026 (MT Newswires) -- Bank of Canada pricing has shifted toward half of a quarter-point hike being priced by December amid the conflict in the Middle East, said Scotiabank.

The BoC usually reacts hawkishly to a sustained rise in energy prices, given that the terms of trade pass through to domestic incomes and related spending, noted the bank.

Canada two-years sovereign bonds are up about 9bps with similar moves across much of the curve, stated Scotiabank.

What the BoC does is going to be critically dependent upon the longevity of the energy price spike, added the bank.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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