Negative Fallout from Trade, Higher Bond Yields Present Case for BOC Pause
Dow Jones
Sep 17
1111 ET - TD Bank's economics team pushes back on the widely accepted notion of near-term rate increases from the Bank of Canada. "From our lens, the risks from trade, economic growth, and oil prices should keep the BOC firmly on the sidelines," TD says in an updated quarterly forecast. Officially, TD has forecast no change in the BOC policy rate through 2027. The bank says inflation in Canada is running at a cooler pace relative to the U.S., with core CPI close to 2%. TD adds financial conditions have already tightened via higher bond yields, adding the near-term impacts from the deteriorating US-Canada trading relationship "is unquestionably negative."
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.