BoC Eyes Caution Despite Tariff Deal

The Bank of Canada is unlikely to accelerate interest rate hikes even if a tariff deal is reached, according to TD Securities.

Robert Both from TD Securities expects the Bank of Canada to remain cautious due to the uncertainty surrounding the trade tensions. The bank wants more data on how lower tariffs affect exports and output, which won't be available until November.

The forecast suggests that the Bank of Canada will stay on hold through 2026 before delivering its first rate hike in January, despite a narrowing output gap.