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TD Sees BOC Hiking To 2.25% By Jan-2023

CANADA
  • TD Securities now calls for the BOC hiking to 2.25% in Jan-2023, reached by 25bp hikes at each of the seven meetings.
  • It sees a “high bar” for 50bp increases but the risk is “clearly rising” on inflation fears - “risk of a 50bp hike is highest in June”.
  • That contrasts with TDS's new Fed call from earlier today looking for back-to-back 50bp hikes in May and June on the way to hitting a terminal rate of 2.5-2.75% in Feb 2023.
  • After the BOC decision earlier this month, TD had looked for four further hikes in 2022 to 1.5% with a further two to 2% by April 2023.

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