Don’t miss this month’s edition of the George Davis Report, where George discusses RBC’s 2022 economic forecasts and the BoC’s new 5-year mandate.
What you need to know
2022 economic growth is expected to remain above trend thanks to a resilient Canadian consumer.
Labour shortages and supply chain disruptions will keep inflation above the BoC’s 2.0% target next year.
While the BoC’s new mandate now includes an employment component, inflation will remain the overriding focus for the time being.
The market is pricing in a more aggressive profile than the 3 rate hikes that RBC expects from the BoC next year.
Our 2022 forecast profile for USD/CAD is more neutral compared to 2021’s bullish profile, with topside risks.
For the trading range:
USD/CAD
Buyers
1.2500/1.2600
Sellers
1.2900/1.3000
This video is part of our monthly George Davis Report series, with ad hoc reports brought to you as current.