Analyst: Canada's inflation "high fever" difficult to retreat, interest rate cuts still need to wait.

Jin10 Data, July 15 - Dominique Lapointe of Manulife Investment Management stated that inflation in Canada remains high, so interest rate cuts will have to wait a bit longer. He pointed out that while the Bank of Canada could reasonably overlook the temporary price rises caused by countervailing tariffs, the uncertainty regarding the extent of cost pass-through and the potential presence of other inflation factors have made the Central Bank reluctant to do so. Lapointe noted that, meanwhile, Canada has not yet faced recessionary pressures that would force the Central Bank to shift to a more accommodative stance. However, Lapointe believes that the rising unemployment rate, widening output gap, and increasingly clear temporary impact of tariffs on inflation will eventually lead the Central Bank to implement two more interest rate cuts in this cycle.