Holding The Line: Why The BoC May Not Move On Rates For All Of 2026
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TD Wealth5.08K FollowersFollow5ShareSavePlay(9min)CommentsSummaryThe Bank of Canada has held rates steady in their December decision.TD Securities predicts that the BoC will be on hold for all of 2026.The central bank may hike rates beginning in 2027. Marc Dufresne/iStock via Getty Images The Bank of Canada held interest rates steady as it warned about modest growth and trade headwinds for Canada’s economy. Andrew Kelvin, Head of Canadian and Global Rates Strategy with TD Securities, says despite those potential headwindsThis article was written byTD Wealth5.08K FollowersFollowTD Wealth is an integral part of the TD Bank Group, which has approximately 24 million customers worldwide, 85,000 employees and CDN $1 trillion in assets on April 30, 2015. In Canada, TD Wealth services customers through: · TD Direct Investing which provides clients access to the information, tools and support that empower them to invest for themselves with confidence. · TD Wealth Private Client Group, which provides discretionary wealth management for high net worth clients and businesses. · TD Wealth Private Investment Advice provides full service brokerage for investors who want a high level of tailored advice and solutions. · TD Wealth Financial Planning develops and implements a financial plan for individual clients. At TD Wealth, whether you invest yourself or benefit from the knowledge provided by your advisor, you gain access to some of the industry's most highly regarded investment analysts, economists and market strategists.Quick InsightsWhat is the expected timeline for the Bank of Canada's next rate hike?Rates are projected to remain at 2.25% through 2026, with the next increase likely in January 2027.How does the USMCA renegotiation risk impact Canada's growth outlook?Uncertainty from USMCA renegotiations is expected to dampen business investment and growth, but its precise impact is difficult to quantify.Which inflation metrics are most critical for the Bank of Canada’s rate decisions?The Bank prioritizes underlying inflation near 2%, closely monitoring shelter inflation and GDP data over volatile jobs numbers to gauge economic slack.Recommended For You