Bank of America Global Research previews next week's April BoC policy meeting.

"We expect the Bank of Canada (BoC) to leave its policy rate unchanged at 2.25% on April 29 and to remain on hold through year‑end as it evaluates incoming economic data and monitors developments surrounding the Iran conflict and the USMCA review advances. We expect the BoC to look through higher headline inflation as core inflation seems contained. Moreover, with a weak beginning of the year, a negative output gap and a soft labor market, we see arguments against potential hikes," BofA notes.

"We expect forward guidance to acknowledge these risks and adopt a cautious tone, while continuing to emphasize flexibility and adaptability, as the effects of higher oil prices become clearer and the USMCA review advances," BofA adds.