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Stock impact report

TD's chief economist on why the BoC will stay on hold for two years and when a ‘pivot point' in housing prices will arrive [Globe and Mail, The (Toronto, Canada)]

Toronto Dominion Bank (The) (TD) 
Last toronto dominion bank (the) earnings: 2/27 06:30 am Check Earnings Report
Tijana Martin/ The Globe and Mail Tijana Martin/The Globe and Mail With inflation nearing the Bank of Canada's 2 per cent overnight rate target, Toronto-Dominion Bank chief economist Beata Caranci currently sees no need to change to the overnight policy rate. TD's quarterly economic forecast report published on Dec. 11 noted that, “If the economy persists on the modest growth path… we expect the Bank of Canada to hold its overnight rate at 2.25 per cent for the foreseeable future.” You expect the Bank of Canada to hold the overnight lending rate at 2.25 per cent, not just in 2026 but throughout 2027. Why is that? We think they are already at their neutral level. 2.25 per cent is the low end of their neutral estimate, and they haven't been showing much comfort in going below that. It's a comfortable number to stay at if you're able to keep inflation around 2, 2.5 per cent. I would think that if the economy is going to improve in 2027, you wouldn't have to be at the lower end of Show less Read more
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