1832 ET - BMO Capital Markets breaks from consensus and believes Bank of Canada will cut its main interest rate by a quarter point in April, to 2.5%. In an updated rate forecast, the firm expects BOC's policy rate to hit 2% by the summer, citing the pending squeeze from President Trump's tariff policy. Consensus has moved toward a BOC pause in April due to accelerating inflation. BOC Gov. Tiff Macklem reiterated tariff-fueled inflation risks in a speech, adding a hot February pick up in prices "got our attention." BMO says while March CPI could remain elevated but is expected to cool in April due to the Liberal government's pre-election cancellation of a carbon tax. BMO says April pause is in play but leans toward cut because the economy "succumbs to an expected recession. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

March 20, 2025 18:32 ET (22:32 GMT)

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