1257 ET - Toronto-Dominion Bank chief economist Beata Caranci defends her call for a quarter-point Bank of Canada rate cut this week, even though the consensus has converged on a jumbo-sized half-point cut. Caranci says economic growth is soft but there is no sign of an imminent recession. Private-sector hiring has picked up since BOC started cutting rates in June, she says, adding wage growth remains above 4% and the savings rate has climbed 2.3 percentage points higher from a year ago. "There's no fire to douse by accelerating rate cuts," she says. Caranci says the BOC must also guard against creating a psychological that every economic hiccup requires a hefty rate-policy response, and the risk of adding too much stimulus to recharge housing-market activity. (paul.vieira@wsj.com, @paulvieira)
(END) Dow Jones Newswires
October 21, 2024 12:58 ET (16:58 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments