Central Banks
TD Says Deep Rate Cuts Will Revive Canada’s Economic Growth
- Bank sees policy rate falling to 2.25% by beginning of 2026
- Consumers ‘suffering under the weight of these high rates’
A condo building under construction in Calgary
Photographer: Todd Korol/BloombergThis article is for subscribers only.
The Bank of Canada’s decision to begin cutting interest rates ahead of the Federal Reserve will ultimately lead to a “big tailwind” for the Canadian economy, Toronto-Dominion Bank economist James Orlando said.
Canada’s economy is projected to grow just 0.9% this year, well below the estimated 2.3% growth in the US, according to a Bloomberg survey of economists. Canadian consumers are more sensitive to interest rates — they have more debt than US households, on average, and mortgage rates are reset more frequently.