Canadian Real Estate Secured Lending Portfolio Highlights
Interest Rate Outlook 98
Interest Rates, Canada and U.S.
%
U.S. Federal
6
Funds Rate
5
4
Bank of
Canada
Overnight
Policy Rate
3
2
1
TD
Forecast
N
2022
■ The Federal Reserve raised the federal
funds rate target to the 0.75% to 1.00%
range in May and is set to begin its
Quantitative Tightening (QT) program.
We anticipate two more 50 basis point
hikes in near-term and for the federal
funds rate to reach a terminal rate of
2.50% in 2022.
■ The Bank of Canada (BoC) raised the
overnight rate to 1.00% in April. We
anticipate two more 50 basis point hikes
in near-term and for the federal funds
rate to reach a terminal rate of 2.50% in
2022.
The Federal Reserve and the Bank of
Canada are likely to raise policy rates
another 150 basis points by 2023.
0
2000
2002 2005 2008
2011
2013 2016
2019
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