In a note to clients Wednesday, TD Securities Chief Canada Strategist Andrew Kelvin raised his view of the terminal rate – the point at which the central bank will top out in the current hiking cycle – to four per cent from his prior call for 3.5 per cent, and said an even higher rate could potentially be in the cards.“We see anything from 3.50 per cent to 4.
“We expect the pace of BoC tightening to slow in coming meetings, and now that policy settings are firmly into restrictive territory we think the most prudent course of action would to move in 25bp increments,” he said. TD’s call comes on the heels of Scotiabank also forecasting the Bank of Canada will be forced to move further into restrictive territory – the range in which interest rates ultimately curb economic growth – due in part to the federal government’s latest $4.5-billion spending plan to help Canadians cope with the rising cost of living.
14 yrs of free money has its consequences
No
We need the liberals to stop spending. So the BOC can stop raising rates.
cheap money is causing all the problems!
200bps Surprise inter-meeting hike warranted.
The sooner we get rid of the free spending useless Liberals the sooner we will bring inflation under control and put more money into people and businesses pockets by eliminating carbon tax and cut the shit out of spending then Bank of Canada garbage can get lost.
A better poll question should be: ‘Is BoC reckless in setting ultra low interest rate that brings misery to families with inflation?’
I love high interest rate...it paid back money baby
Everyone that voted yes must be over leveraged home owner or real estate investor.
They have created the inflation mess but not undoing it with baby steps taken half heartedly. Should have raise interest rates by another 2.5% by now. Sometime next year, expect overnight rates to be over 6%
Now do money printing.
No, it's necessary because they acted too late. Inflation was never transitory.
Employment: Full, labour shortage in fact Inflation: Raging, destroying low income people Which is the thing to worry about?
Anyone saying yes loses their ability to complain about inflation.
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