PrintNomura Sees Bank of Canada on Hold This Year as Underlying Price Pressures Cool
BY MT Newswires | ECONOMIC | 08:26 AM EDT08:26 AM EDT, 05/20/2026 (MT Newswires) -- Canadian headline consumer price index rose to 2.8% year over year in April from 2.4% in March, largely reflecting surging energy prices, said Nomura after Tuesday's CPI.
Core inflation continued to cool with the Bank of Canada's preferred core measures averaging 2.1% year over year, the lowest since January 2021, noted Nomura. A range of alternative core measures also remained within the BoC's target range of 1% to 3%.
Shelter inflation was unchanged, while rent inflation slowed further and mortgage interest costs declined on an annual basis. Excluding energy, broader details pointed to continued cooling in underlying price pressures.
Overall, the report reinforces the bank's view that underlying inflation remained contained. Nomura continues to expect the BoC to look through near-term energy price pressures and remain on hold through 2026.
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