Bank of Canada: Rates seen on hold then higher – TD Securities
TD Securities expects the Bank of Canada to maintain the Overnight Rate at 2.25% through 2026, despite headline CPI near the top of its target range.
TD Securities anticipates the Bank of Canada will keep the Overnight Rate at 2.25% through 2026, even though headline CPI is close to the upper limit of its target range. The bank anticipates a return to neutral at 2.75% in 2027 through two 25 basis point hikes, as excess supply becomes absorbed and oil-driven inflation shock subsides.
The Bank of Canada enters a media blackout on Wednesday prior to the September 2nd policy decision, where TD Securities and the market will be waiting to see if the Bank holds rates steady at 2.25%.
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