Canadians, whether borrowers, lenders or savers have been attuned to rising interest rates in 2018. Rates are on the rise and where they go depends upon external forces such as exchange rates with trading partners and equity markets.
The Canadian economy had a solid month with positive employment figures, settlement of the US NAFTA 2.0 (USMC agreement) and the large liquid natural gas (LNG) project announcement. Looking forward, our partners at National Bank Financial (NBF) Economics offer investors insights on pace and and timing of interest rates which include:
- The Bank of Canada (BoC), as widely expected, raised the overnight rate 25 bps to 1.75% on October 24, 2018
- NBF continues to see the Bank (BoC) taking a long pause at 2.5% bank rate
- NBF outlook for 10-year U.S. Treasuries is trading around 3.50% and 10-year Canadas around 3.10%, a year from now in October 2019
- NBF sees the Canadian central bank overnight rate at 2.5% and the upper bound of the target fed funds range at 3.0% at year-end 2019
Enjoy a detailed outlook for Canadian, US and Global Fixed Income Markets from our partners at NBF Economics HERE.