Strong Canadian GDP Lowers BoC Rate Cut Risk, TD Securities Says
Stronger-than-expected Canadian GDP data supports a brighter growth outlook and reduces the likelihood of a Bank of Canada rate cut, according to TD Securities analysts.
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Canadian economic growth surprised to the upside, prompting TD Securities to trim the perceived risk of a rate cut by the Bank of Canada.
Analysts Robert Both and Emma Lawrence said the stronger GDP print supports a brighter near-term outlook for the economy. However, they cautioned that the data does not materially alter their broader view on the central bank’s policy trajectory.
The report comes as markets reassess the timing of potential monetary easing.
Source: FXStreet Forex News