Goldman Sachs Research previews the July BoC decision due on Wednesday.

"With both upside inflation risks and downside growth risks diminishing, we expect the BoC to remain firmly on hold this week. We look for a return to pre-war guidance that the policy rate is in "about the right place" but continued emphasis on the need to remain "nimble" amid still-elevated uncertainty. We expect modest downgrades to the growth and headline inflation forecasts in the MPR after incorporating lower oil futures prices, but we expect the broader economic outlook will be little changed," GS notes.

"We expect that the BoC will remain on hold in 2026 before normalizing to the middle of its neutral rate range next year. Our forecasts remain dovish relative to market pricing," GS adds.