TD Bank expects Canada's real GDP growth to remain less than half of that in the U.S. throughout 2024, reinforcing the Bank of Canada's conviction in rate...
Governor of the Bank of Canada Tiff Macklem, right, and Senior Deputy Governor Carolyn Rogers leave after a news conference on the Bank of Canada’s release of the 2024 Financial Stability Report in Ottawa on Thursday, May 9, 2024. THE CANADIAN PRESS/Justin TangThe Bank of Canada could cut its benchmark interest rate up to three times before the Federal Reserve begins moving rates lower, say economists, downplaying the risk of a widening policy rate gap between the central banks.
“Below-trend growth in Canada should make the Bank of Canada confident that it has inflation under control,” he wrote. “The Fed, however, does not have this luxury.” TD Economics sees the Bank of Canada beginning to lower rates this summer, accelerating cuts into the end of 2024. TD expects the Fed to begin cutting in December.
“Importing firms in Canada don’t have a lot of room to pass on higher prices to consumers, and will likely be forced to absorb some of the higher cost of imports through lower margins. The inflationary impact should therefore be somewhat smaller compared to an environment where both economies were strong,” he wrote. “As the Bank tries to find the limit of how far it can diverge from the Fed, for now, it should be free to run its own race.
Donald Trump has called on the Supreme Court to weigh in on his hush-money case as his sentencing looms next month.The former president, who was convicted on 34 felony counts of falsifying business records, is set to be sentenced on July 11, four days before the beginning of the Republican National Convention in Milwaukee.
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