BoC: 1.75% likely to be top of the cycle – TDS

Analysts at TD Securities continue to view 1.75% as the top of the cycle for the Bank of Canada, but do not think they will capitulate to a market pricing in cuts.

Key Quotes

“Since April, we have seen a stabilization in domestic data which has helped to reduce some of the downside risks to the Canadian economy. Q1 showed a large rebound in both nonresidential investment and consumption, even if net exports did weigh heavily on headline GDP. And the labour market continues to defy gravity with over 450k jobs created in the last twelve months.”

“We have also seen some green shoots in the housing market and core inflation remains near target. While this should give the Bank of Canada some comfort in its current policy stance, it is not enough to return the Bank to a hiking path.”

Articles You May Like

When are the UK retail sales and how could they affect GBP/USD?
4 Easy Steps To Learn Crypto Trading – Ultimate Guide for Beginners (Tagalog)
Forex today: FOMC’s dovish turnout was expected, but dollar on tenterhooks
Fed: Two rate cut in 2019 – Wells Fargo
Australian Dollar Won’t Be Spared By This Week’s Focus On the Fed

Leave a Reply

Your email address will not be published. Required fields are marked *