IS THERE AN AN END IN SITE FOR INTEREST RATRE INCREASES!
Tuesday Sep 20th, 2022
TD Securities thinks there’s more room to run for the Bank of Canada as it increases interest rates from the pandemic lows.
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.
“The BoC's hawkish ambiguity implies a wider range of potential terminal rates for Canada,” he said.
“We see anything from 3.50 per cent to 4.75 per cent as plausible, and think a four per cent terminal rate strikes a nice balance of maintaining BoC credibility and not unduly burdening the household sector.” # SANDI HALPERN # REAL ESTATE iNTEREST RATES # SOLD