Think tank: Bank of Canada will keep rates unchanged indefinitely due to widespread economic weakness

Golden Ten Data reported on July 9 that, according to the Canadian think tank Signal49's forecast, the Bank of Canada may keep interest rates unchanged indefinitely (with the forecast period lasting until 2030). Meanwhile, policymakers are trying to support the struggling economy before conditions normalize by the end of this decade. The independent forecasting agency expects that, as Canada grapples with near-zero population growth and uncertainty in U.S. trade policy, the country's GDP will increase by only 0.5% this year. Higher energy prices and sluggish consumer confidence will limit the growth of consumer spending. The agency added that, excluding infrastructure and defense, government spending will be restricted. The broader weakness in the Canadian economy should reassure the Bank of Canada that inflation will be temporary.