The Financial Post reports in its Thursday edition that Capital Economics is dropping its call for at least one interest rate cut in early 2026, which was based on the belief that the federal budget would not provide enough stimulus for the economy. The Post's Gigi Suhanic writes that the Bank of Canada in its policy statement said it expects moderate growth in 2026 even though businesses' hiring intentions appear muted despite the recent release of blockbuster jobs data in the latest Statistics Canada Labour Force Survey. Furthermore, it said ongoing slack in the economy will keep inflation expectations tethered around the 2 per cent target. "This all but kills our previously held view that the policy rate would eventually be lowered into accommodative territory at some point next year, given a sluggish recovery and lack of any offsetting short-term stimulus measures in the federal government's latest budget," Bradley Saunders, North America economist at Capital Economics, said in a note. "That said, we still hold a relatively dovish view." He said the door is still open to a move on rates, pointing out the BOC said: "Uncertainty remains elevated. If the outlook changes, we are prepared to respond."