Bank of Canada can let loonie weaken and skip hikes, Bank of America says (opens original article in a new tab)

Bank of America advises Bank of Canada to maintain current rates and let the loonie weaken, citing weak economic conditions and limited inflationary pressure from a weaker currency.

• Bank of America suggests Bank of Canada may keep rates on hold and allow loonie to weaken despite potential U.S. rate hikes
• Weak loonie doesn't typically cause significant inflation in Canada according to BofA analyst
• Inflation in Canada was 2.8% in April driven by fuel costs, not underlying price pressures
• Canadian economy shows weakness with negative output gap preventing demand-driven inflation