The Globe and Mail reports in its Friday edition that as oil prices ease, expectations the Bank of Canada may hike interest rates are cooling down. The Globe's Salmaan Farooqui writes that bond swap markets are currently pricing in just over a 50-per-cent chance of a quarter-point rate hike by the end of 2026. It's a marked change from recent months when markets were pricing in expectations of up to two rate hikes this year. The reversal follows the recent drop in oil prices, leading economists to believe that the worst of inflation from the Iran war is past us. Inflation rose to 3.1 per cent in May. But economists from multiple banks were unconcerned, saying that the spike was largely owing to energy prices that are now tapering off. TD economist Leslie Preston says: "Oil prices are down significantly since a tentative peace deal between Iran and the U.S. was reached, and gasoline prices have been following suit. We expect May to mark the peak for headline inflation this year." While the BOC standing pat on interest rates will directly shield variable mortgage holders from higher monthly payments, it may not have a notable effect on fixed-rate mortgages, which are instead affected by movements in the bond market.