07:29 AM EDT, 06/11/2026 (MT Newswires) -- The Bank of Canada kept its policy rate unchanged at Wednesday's policy meeting, as widely expected, said Nomura.

BoC Governor Tiff Macklem offered no directional forward guidance and emphasized two-sided policy risks, noted the bank. The opening statement was dovish on net.

The BoC's Council didn't explicitly reference the technical recession, but acknowledged weaker growth, pointed out Nomura. In contrast to April, the statement no longer characterized growth as above potential and instead noted that the economy is expected to remain in excess supply.

Policymakers remained sanguine on inflation, citing improvement in core inflation measures and limited evidence of broad-based spillovers from higher energy prices.

The BoC also reiterated that it would look through the Iran war's near-term impact on inflation. Overall, downside risks to growth remain elevated while price pressures appear contained, stated Nomura.

The bank continues to expect the BoC to remain on hold through 2026.