The bank forecasts the Bank of Canada will hold rates at 2.25% through 2026, supporting CAD appreciation.
TD Securities expects the Canadian dollar to converge to 1.38 against the US dollar, citing the Bank of Canada’s decision to leave interest rates unchanged at 2.25%. The bank maintained a balanced tone, signaling no immediate policy shifts.
Analysts project the Bank of Canada will hold rates steady through 2026, with the next potential hike not expected until early that year. This stance contrasts with market expectations for earlier adjustments, reinforcing CAD stability.
The forecast reflects confidence in Canada’s economic outlook, though currency movements will depend on global risk sentiment and commodity price trends.