Investor Presentaiton
Interest Rate Outlook 101
7
Interest Rates, Canada and U.S.
%
6
LO
5
3
2
Bank of
Canada
Overnight
Policy Rate
U.S. Federal
Funds Rate
ID
Forecast
■ The Federal Reserve raised the
federal funds rate target to the 2.25%
to 2.50% range in July. We anticipate
an additional 125 bps rate hike across
FOMC meetings until the end of the
year. This will bring the federal funds
rate to 3.75% by the end of 2022.
■ The Bank of Canada (BoC) also
raised the overnight rate in July to
2.50% and raised again to 3.25% in
September. We expect the BoC to
hike the policy rate another 75 bps
bringing the terminal rate to 4.00% by
year-end.
The Federal Reserve and the Bank of
Canada are expected to achieve policy
rates of 3.75% and 4.00% by 2023,
respectively.
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2000
2002 2005
2008
2011
2013 2016
2019
2022
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