Home›Forex›Central Banks›Bank of Canada outlook unchanged despite stronger Cana…

Bank of Canada outlook unchanged despite stronger Canadian GDP data

TD Securities says Canada’s Q2 growth is tracking above BoC projections, but policy rates are expected to stay unchanged through 2026.

Reported · Written up by our desk · Central Banks

TD Securities analysts Robert Both and Emma Lawrence said stronger-than-expected Canadian GDP supports a brighter growth outlook, but it does not materially change their view of the Bank of Canada’s path for policy rates, according to FXStreet.

They noted that Q2 GDP is tracking above BoC projections, yet they still expect the Bank of Canada to hold policy rates unchanged through 2026.

The analysts forecast that a gradual hiking cycle would begin in early 2027, despite the recent growth data.

FXStreet also highlighted broader FX market context, including how geopolitical tensions and rising global oil prices were cited alongside currency moves such as GBP/USD trading near 1.3470.

Latest closeGBP/USD 1.347 ▲1.4%

More like this

Sources