ING Keeps Bearish Canadian Dollar Outlook Despite Further Central Bank Hike Expectations

06:48 AM EDT, 10/29/2026 (MT Newswires) -- ING Economics said Thursday it remains bearish on the Canadian dollar despite prospects for further Bank of Canada tightening, adding markets are pricing in excessive rate hikes over the coming year. Despite support from the BoC's 25 basis points hike to 2.50% on Wednesday and persistent energy price pressures, ING expects rates to peak at 2.75%, below market expectations. A pullback in oil prices could trigger dovish repricing and weaken the Canadian dollar, according to the bank in a note. ING maintains its year-end USD/CAD target of CA$1.420, citing limited potential for sustained Canadian dollar gains from domestic factors alone.