A Wall Street Journal survey found economists expect the Bank of Canada to pare back expectations for future rate hikes.

Centurion Asset Management chief economist Carl Gomez says that despite recession talk and rising idle-capacity concerns, the BOC’s policy remains modestly accommodative. The policy rate is 2.25%, at the lower end of the BOC’s estimated neutral-rate range. Gomez does not expect two consecutive quarters of GDP decline to materially affect Wednesday’s policy decision, citing strong May employment data that largely reversed weakness from early 2026. He adds the BOC will continue firm rhetoric to reinforce its anti-inflation credentials and anchor CPI expectations.

Poland's Prime Minister Tusk said the war in Ukraine cannot be resolved without Poland's participation.