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TDS Revise BoC Call, See 25bps Cut Next Week

CANADA
  • TD Securities change their BoC call, and now see a 25bps rate cut to 4.75% next week. They think today's softer GDP data will tip the scale, writing that they now "see less benefit to waiting for another six weeks of data"
  • The Bank of Canada will still be looking at downward level shock to its projections for Q1/Q2 activity after calling for +2.8% in the April MPR, and with the substantial progress across underlying price pressures removes a key obstacle to near-term cuts.

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