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Commerzbank Says Canadian Dollar Could Benefit If Bank of Canada Focuses on Wednesday on Upside Inflation Risks

BY MT Newswires | ECONOMIC | 08:25 AM EDT

08:25 AM EDT, 03/18/2026 (MT Newswires) -- The Bank of Canada will release its policy statement at 9:45 a.m. ET on Wednesday, with all economists surveyed by Bloomberg expecting an unchanged interest rate, said Commerzbank.

The bank shares this assessment.

However, the BoC is likely one of the few G10 central banks that could really hike rates this year, stated Commerzbank. The real interest rate is likely in slightly expansionary territory, while at the same time, there are legitimate hopes that the real economy will pick up in the second half of the year.

But Monday's Canadian inflation figures also made it clear that a rate hike isn't a foregone conclusion, as the headline consumer price index even fell by 0.1 percentage point more than expected, added the bank.

If the monetary policymakers emphasize the significance of upside inflation risks on Wednesday, discussions could gain momentum again -- and the Canadian dollar (CAD or loonie) could benefit, according to Commerzbank.

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

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