Wholesale Banking - Positioned for Growth
Interest Rate Outlook¹
Interest Rates, Canada and U.S.
%
7
Co
LO
5
U.S. Federal
Funds Rate
4
Bank of
Canada
Overnight
Rate
3
2
TD
Forecast
■ In July, the Federal Reserve (Fed)
raised the federal funds rate to the
5.25%-5.50% range. We expect an
additional 25 basis point hike in the
first quarter of next year, with the
upper limit remaining at 5.75% until
the third quarter of 2024, which is
when we expect the Fed to begin
cutting interest rates.
■ The Bank of Canada (BoC) raised
their overnight policy rate to 5.00% in
July. We expect the BoC to leave
rates at this level through the
remainder of 2023, with rate cuts
commencing in the second quarter of
2024.
2000
2006
2012
2018
2024
At the end of 2023, we anticipate that
the Federal Reserve and Bank of
Canada will leave policy rates at
5.50% and 5.00%, respectively.
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