1042 ET - Capital Economics says its forecast for three more rate cuts from the Bank of Canada could be at risk should PM Mark Carney and President Trump clinch a deal by late July to resolve the current trade conflict. Last week, the two leaders pledged to reach an economic-and-security pact over the next 30 days. Carney has since identified July 21 as a key date in talks, at which time Canada could lift tariffs on US steel and aluminum depending on the state of negotiations. CapEcon says a deal would improve Canada's near-term economic outlook. In that case, CapEcon says, the BOC "would likely feel less compelled to support growth, making further policy easing less likely." (Paul.Vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

June 23, 2025 10:43 ET (14:43 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.