Bank of Canada Sees Steady Course Through 2026: TD Securities

TD Securities expects the Bank of Canada to maintain its Overnight Rate at 2.25% through 2026, according to a recent forecast.

The bank points to normalised oil prices following the US-Iran conflict and headline CPI near the top of the central bank's 1-3% target range as conditions consistent with a steady policy stance.

TD Securities' forecast assumes the inflation impulse linked to oil is assessed over time, and that spillovers into domestic CPI remain contained.

The Bank of Canada's next policy decision is due on September 2, following a media blackout starting Wednesday.