08:10 AM EDT, 07/16/2025 (MT Newswires) -- It was the summer of 2022 when inflation in both Canada and the United States hit a four-decade high, noted Bank of Montreal (BMO).

Three years later and -- though cost pressures have come down significantly -- the battle to restore price stability is still on-going, said the bank.

Canada's headline inflation rate picked up two-tenths to 1.9% year over year in June, while core measures remained stubborn at around 3%. According to BMO, those figures give the Bank of Canada almost nothing to justify a rate cut in July.

As such, the bank has pushed back its rate-cut call, now expecting a 25bps move in September, December 2025 and March 2026.